C.R.S. § 39-26-101 Short title
39-26-101. Short title. This article shall be known and may be cited as the "Emergency Retail Sales Tax Act of 1935".
Sales and Use Tax
C.R.S. tit. 39, art. 26
in effectC.R.S. § 39-26-102 Definitions
39-26-102. Definitions. As used in this article 26, unless the context otherwise requires:
(1) "Agricultural commodity" means any agricultural commodity as defined in section 35-28-104 (1), C.R.S.; except that, for purposes of this article, "agricultural commodity" shall also include sugar beets, timber and timber products, oats, malting barley, barley, hops, rice, milo, and any other feed grain.
(1.3) "Auction sale" means any sale conducted or transacted at a permanent place of business operated by an auctioneer or a sale conducted and transacted at any location where tangible personal property is sold by an auctioneer when such auctioneer is acting either as agent for the owner of such personal property or is in fact the owner thereof. The auctioneer at any sale defined in subsection (10) of this section, except when acting as an agent for a duly licensed retailer or vendor or when selling only tangible personal property that is exempt under the provisions of section 39-26-716 (4)(a) and (4)(b), is a retailer or vendor as defined in subsection (8) of this section and the sale made by the auctioneer is a retail sale as defined in subsection (9) of this section, and the business conducted by said auctioneer in accomplishing such sale is the transaction of a business as defined by subsection (2) of this section.
(2) "Business" includes all activities engaged in or caused to be engaged in with the object of gain, benefit, or advantage, direct or indirect.
(2.5) "Charitable organization" means any entity organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office, or any veterans' organization registered under section 501 (c)(19) of the federal "Internal Revenue Code of 1986", as amended.
(2.6) "Coins" means monetized bullion or other forms of money manufactured from gold, silver, platinum, palladium, or other such metals now, in the future, or heretofore designated as a medium of exchange under the laws of this state, the United States, or any foreign nation.
(2.7) "Cooperative direct mail advertising" means advertising for one or more businesses which is in the form of discount coupons, advertising leaflets, or other printed advertising which are delivered by mail in a single package or bundle to potential customers of such businesses participating in such advertising.
(2.8) "Direct mail advertising materials" means discount coupons, advertising leaflets, and other printed advertising, including, but not limited to, accompanying envelopes and labels.
(3) "Doing business in this state" means the selling, leasing, or delivering in this state, or any activity in this state in connection with the selling, leasing, or delivering in this state, of tangible personal property or taxable services by a retail sale as defined in this section, for use, storage, distribution, or consumption within this state. This subsection (3) affects the imposition, application, or collection of sales and use taxes only. "Doing business in this state" includes, but shall not be limited to, the following acts or methods of transacting business:
in this state, of tangible personal property or taxable services by a retail sale as defined in this section, for use, storage, distribution, or consumption within this state. This subsection (3) affects the imposition, application, or collection of sales and use taxes only. "Doing business in this state" includes, but shall not be limited to, the following acts or methods of transacting business:
(a) The maintaining within this state, directly or indirectly or by a subsidiary, of an office, distribution facility, salesroom, warehouse, storage place, or other similar place of business, including the employment of a resident of this state who works from a home office in this state; or
(b) The soliciting, either by direct representatives, indirect representatives, manufacturers' agents, or by distribution of catalogues or other advertising, or by use of any communication media, or by use of the newspaper, radio, or television advertising media, or by any other means whatsoever, of business from persons residing in this state and by reason thereof receiving orders from, or selling or leasing tangible personal property to, such persons residing in this state for use, consumption, distribution, and storage for use or consumption in this state.
(c) Economic nexus. (I) Except as provided in subsection (3)(c)(II) of this section, a person is doing business in this state in a calendar year:
(A) If in the previous calendar year the person has made retail sales of tangible personal property, commodities, or services in the state as specified in section 39-26-104 (3), exceeding one hundred thousand dollars; or
(B) On and after the first day of the month after the ninetieth day after the person has made retail sales of tangible personal property, commodities, or services in the state as specified in section 39-26-104 (3), in the current calendar year that exceed one hundred thousand dollars.
(II) Beginning October 1, 2019, for purposes of determining whether the thresholds set forth in subsection (3)(c)(I) of this section are met:
(A) A marketplace facilitator shall include all sales made by marketplace sellers in and through its marketplace; and
(B) A marketplace seller shall not include any sales made in or through a marketplace facilitator's marketplace.
(III) This subsection (3)(c) does not apply to any person who is doing business in this state under subsection (3)(a) of this section but otherwise applies to any other person.
(4) "Farm close-out sale" means a sale by auction or private treaty of all tangible personal property of a farmer or rancher previously used by him in carrying on his farming or ranching operations. Unless said farmer or rancher is making or attempting to make full and final disposition of all property used in his farming or ranching operations and is abandoning the said operations on the premises whereon they were previously conducted, such sale shall not be deemed a "farm close-out sale" within the meaning of this article.
(4.5) (a) "Food" means food for domestic home consumption as defined in 7 U.S.C. sec. 2012 (k), as amended, for purposes of the federal food stamp program, or any successor program, as defined in 7 U.S.C. sec. 2012 (l), as amended; except that "food" does not include carbonated water marketed in containers; chewing gum; seeds and plants to grow foods; prepared salads and salad bars; packaged and unpackaged cold sandwiches; deli trays; and hot or cold beverages served in unsealed containers or cups that are vended by or through machines or non-coin-operated coin-collecting food and snack devices on behalf of a vendor.
mended; except that "food" does not include carbonated water marketed in containers; chewing gum; seeds and plants to grow foods; prepared salads and salad bars; packaged and unpackaged cold sandwiches; deli trays; and hot or cold beverages served in unsealed containers or cups that are vended by or through machines or non-coin-operated coin-collecting food and snack devices on behalf of a vendor.
(b) In determining whether a food product is for domestic home consumption, unless the vendor is described in section 39-26-104 (1)(e), no inference shall be drawn from the type of vendor selling the product, the location of the product within a store, or the manner in which the product is marketed.
(5) "Gross taxable sales" means the total amount received in money, credits, or property, excluding the fair market value of exchanged property which is to be sold thereafter in the usual course of the retailer's business, or other consideration valued in money from sales and purchases at retail within this state, and embraced within the provisions of this article. The taxpayer may take credit in this report of gross sales for an amount equal to the sale price of property returned by the purchaser when the full sale price thereof is refunded whether in cash or by credit. The fair market value of any exchanged property which is to be sold thereafter in the usual course of the retailer's business, if included in the full price of a new article, shall be excluded from the gross sales. On all sales at retail, valued in money, when such sales are made under conditional sales contract, or under other forms of sale where the payment of the principal sum thereunder is extended over a period longer than sixty days from the date of sale thereof, only such portion of the sale amount thereof may be counted for the purpose of imposition of the tax imposed by this article as has actually been received in cash by the taxpayer during the period for which the tax imposed by this article is due and payable. Taxes paid on gross sales represented by accounts found to be worthless and actually charged off for income tax purposes may be credited upon a subsequent payment of the tax provided in this article, but if any such accounts are thereafter collected by the taxpayer, a tax shall be paid upon the amounts so collected.
(5.5) "Livestock" means cattle, horses, mules, burros, sheep, lambs, poultry, swine, ostrich, llama, alpaca, and goats, regardless of use, and any other animal which is raised primarily for food, fiber, or hide production. "Livestock" shall also mean "alternative livestock" as defined under section 35-41.5-102, C.R.S. "Livestock" shall not mean a pet animal as defined under section 35-80-102 (10), C.R.S.
(5.6) "Livestock production facility" means any structure used predominately for the housing, containing, sheltering, or feeding of livestock, including, without limitation, barns, corrals, feedlots, and swine houses.
(5.7) "Mainframe computer access" means the provision of access to computer equipment for the purpose of storing or processing data. "Mainframe computer access" does not include the provision of access to computer equipment for the purpose of examining or acquiring data maintained by the vendor. "Mainframe computer access" does not include the provision of access to computer equipment incident to electronic computer software delivery, as defined in subsection (15)(c)(II)(C) of this section, or incident to the use of computer software hosted by an application service provider, as defined in subsection (15)(c)(II)(A) of this section.
(5.8) "Marketplace" means a physical or electronic forum, including, but not limited to, a store, a booth, an internet website, a catalog, or a dedicated sales software application, where tangible personal property, commodities, or services are offered for sale.
(5.9) (a) "Marketplace facilitator" means a person who:
tion service provider, as defined in subsection (15)(c)(II)(A) of this section.
(5.8) "Marketplace" means a physical or electronic forum, including, but not limited to, a store, a booth, an internet website, a catalog, or a dedicated sales software application, where tangible personal property, commodities, or services are offered for sale.
(5.9) (a) "Marketplace facilitator" means a person who:
(I) Contracts with a marketplace seller to facilitate for consideration, regardless of whether the consideration is deducted as fees from the transaction, the sale of the marketplace seller's tangible personal property, commodities, or services through the person's marketplace;
(II) Engages directly or indirectly, through one or more affiliated persons, in transmitting or otherwise communicating the offer or acceptance between a purchaser and the marketplace seller; and
(III) Either directly or indirectly, through agreements or arrangements with third parties, collects the payment from the purchaser and transmits the payment to the marketplace seller.
(b) A "marketplace facilitator" does not include a person that exclusively provides internet advertising services or lists products for sale, and that does not otherwise meet the definition set forth in subsection (5.9)(a) of this section.
(6) "Marketplace seller" means a person, regardless of whether the person is doing business in this state, who has an agreement with a marketplace facilitator and offers for sale tangible personal property, commodities, or services through a marketplace owned, operated, or controlled by a marketplace facilitator.
(6.1) "Medical marijuana" has the same meaning as set forth in section 44-10-103 (34).
(6.2) "Multichannel seller" means a retailer that offers for sale tangible personal property, commodities, or services through a marketplace owned, operated, or controlled by a marketplace facilitator, and through other means.
(6.3) "Person" includes any individual, firm, limited liability company, partnership, joint venture, corporation, estate, or trust or any group or combination acting as a unit, and the plural as well as the singular number.
(6.4) "Packing and crating" means tangible personal property furnished to prepare tangible personal property purchased at retail for delivery to a location designated by the purchaser.
(6.5) "Photocopying" means the sale of a document rendered on paper or other similar material by a machine that creates an accurate reproduction of the original. "Photocopying" does not include the provision of a photocopy in connection with services if the purchaser is not charged separately for photocopying.
(6.6) "Precious metal bullion" means any precious metal, including, but not limited to, gold, silver, platinum, and palladium, that has been put through a process of refining and is in such a state or condition that its value depends upon its precious metal content and not its form.
(6.7) "Pre-press preparation printing materials" means those tangible products converted to use for a specific print job that are subsequently saved but can only be reused for that same print client on rerun. Title to such pre-press preparation printing materials must pass to an independent customer with the sale of the printed materials, and they must be reusable for their original purpose or a similar purpose after the press run. Examples of "pre-press preparation printing materials" include, but are not limited to, photos, color keys, dies, engravings, light sensitive film or paper, masking sheets of any material, plates, rotogravure cylinders, and proofing samples of any material. No disposable materials or materials consumed to a significant degree are pre-press preparation printing materials for the purposes of this article. Examples of disposable or consumable materials include, but are not limited to, tape, alcohol, glues, adhesives, washes, silicon solutions, pens, markers, and cleaners.
any material, plates, rotogravure cylinders, and proofing samples of any material. No disposable materials or materials consumed to a significant degree are pre-press preparation printing materials for the purposes of this article. Examples of disposable or consumable materials include, but are not limited to, tape, alcohol, glues, adhesives, washes, silicon solutions, pens, markers, and cleaners.
(6.8) "Public school" means a public school of a school district in this state or an institute charter school.
(7) (a) "Purchase price" means the price to the consumer, exclusive of any direct tax imposed by the federal government or by this article 26, exclusive of any retail delivery fee and enterprise retail delivery fees imposed or collected as specified in section 43-4-218, and, in the case of all retail sales involving the exchange of property, also exclusive of the fair market value of the property exchanged at the time and place of the exchange, if:
(I) Such exchanged property is to be sold thereafter in the usual course of the retailer's business; or
(II) Such exchanged property is a vehicle and is exchanged for another vehicle and both vehicles are subject to licensing, registration, or certification under the laws of this state, including, but not limited to, vehicles operating upon public highways, off-highway recreation vehicles, watercraft, and aircraft.
(b) In the case of the sale or transfer of wireless telecommunication equipment as an inducement to a consumer to enter into or continue a contract for telecommunication services that are taxable pursuant to this part 1, "purchase price" means and shall be limited to the monetary amount paid by the consumer and shall not reflect any sales commission or other compensation received by the retailer as a result of the consumer entering into or continuing a contract for such telecommunication services. Nothing in this paragraph (b) shall be construed to define "purchase price" as it applies to the amount a retailer collects from a consumer who defaults or terminates a contract for telecommunication services.
(c) With respect to the purchase price of a heavy truck, trailer, or tractor, the price to the consumer shall also be exclusive of the federal excise tax on the first retail sale of the heavy truck, trailer, or tractor for which the retailer is liable.
(7.5) "Qualified purchaser" means a person domiciled in Colorado who has been issued a direct payment permit number pursuant to section 39-26-103.5.
(7.6) and (7.7) Repealed.
(8) "Retailer" or "vendor" means a person doing business in this state known to the trade and public as such, and selling to the user or consumer, and not for resale. The term includes a marketplace facilitator, a marketplace seller, and a multichannel seller doing business in this state.
(9) "Retail sale" includes all sales made within the state except wholesale sales.
(10) "Sale" or "sale and purchase" includes installment and credit sales and the exchange of property as well as the sale thereof for money; every such transaction, conditional or otherwise, for a consideration, constituting a sale; and the sale or furnishing of electrical energy, gas, steam, telephone, or telegraph services taxable under the terms of this article. Neither term includes:
(a) A division of partnership or limited liability company assets among the partners or limited liability company members according to their interests in the partnership or limited liability company;
(b) The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all the corporation's outstanding stock, except qualifying shares, in proportion to the assets contributed;
(c) The transfer of assets of shareholders in the formation or dissolution of professional corporations;
(d) The dissolution and the pro rata distribution of the corporation's assets to its stockholders;
business and the transfer of their business assets to the corporation in exchange for all the corporation's outstanding stock, except qualifying shares, in proportion to the assets contributed;
(c) The transfer of assets of shareholders in the formation or dissolution of professional corporations;
(d) The dissolution and the pro rata distribution of the corporation's assets to its stockholders;
(e) The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty percent by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation;
(f) The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty percent by the parent corporation to a parent corporation or to another subsidiary which is owned at least eighty percent by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets;
(g) A transfer of a limited liability company or partnership interest;
(h) The transfer in a reorganization qualifying under section 368 (a)(1) of the "Internal Revenue Code of 1986", as amended;
(i) The formation of a limited liability company or partnership by the transfer of assets to the limited liability company or partnership or transfers to a limited liability company or partnership in exchange for proportionate interests in the limited liability company or partnership;
(j) The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder;
(k) The transfer of assets between parent and closely held subsidiary corporations, or between subsidiary corporations closely held by the same parent corporation, or between corporations which are owned by the same shareholders in identical percentage of stock ownership amounts, computed on a share-by-share basis, when a tax imposed by this article was paid by the transferor corporation at the time it acquired such assets, except to the extent provided by subsection (12) of this section. For the purposes of this paragraph (k), a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at least eighty percent of the total combined voting power of all classes of stock entitled to vote and owns at least eighty percent of the total number of shares of all other classes of stock.
(11) "Sale" or "sale and purchase", in addition to the items included in subsection (10) of this section, includes the transaction of furnishing rooms or accommodations by any person, partnership, limited liability company, association, corporation, estate, receiver, trustee, assignee, lessee, or person acting in a representative capacity or any other combination of individuals by whatever name known to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park, under any concession, permit, right of access, license to use, or other agreement, or otherwise.
ny other combination of individuals by whatever name known to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park, under any concession, permit, right of access, license to use, or other agreement, or otherwise.
(12) Except as otherwise provided in this subsection (12), the sales tax is imposed on the full purchase price of articles sold after manufacture or after having been made to order and includes the full purchase price for material used and the service performed in connection therewith, excluding, however, such articles as are otherwise exempted in this article. In connection with the transactions referred to in paragraph (k) of subsection (10) of this section, the sales tax is imposed only on the amount of any increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor corporation. Except as otherwise provided in this subsection (12), the sales price is the gross value of all materials, labor, and service, and the profit thereon, included in the price charged to the user or consumer.
(13) "School" means an educational institution having a curriculum comparable to grade, grammar, junior high, high school, or college, or any combination thereof, requiring daily attendance, having an enrollment of at least forty students, and charging a tuition fee.
(13.5) (Deleted by amendment, L. 2011, (HB 11-1293), ch. 299, p. 1437, § 4, effective July 1, 2012.)
(14) "State treasurer" or "treasurer" means the state treasurer of the state of Colorado.
(15) (a) (I) "Tangible personal property" means corporeal personal property. The term embraces all goods, wares, merchandise, products and commodities, and all tangible or corporeal things and substances that are dealt in and capable of being possessed and exchanged, except as set forth in this subsection (15). The term shall not be construed to include newspapers, as legally defined by section 24-70-102, preprinted newspaper supplements that become attached to or inserted in and distributed with such newspapers, or direct mail advertising materials that are distributed in Colorado by any person engaged solely and exclusively in the business of providing cooperative direct mail advertising; except that, commencing March 1, 2010, for purposes of the state sales or use tax, "tangible personal property" shall include direct mail advertising materials that are distributed in Colorado by any person engaged solely and exclusively in the business of providing cooperative direct mail advertising.
(II) No funding received from revenues received as a result of the passage of House Bill 10-1189, enacted in 2010, shall be used to fund additional full-time equivalent state employees.
(b) (Deleted by amendment, L. 2011, (HB 11-1293), ch. 299, p. 1437, § 4, effective July 1, 2012.)
(b.5) (I) "Tangible personal property" includes digital goods. The method of delivery does not impact the taxability of a sale of tangible personal property. Examples of methods used to deliver tangible personal property under current technology include but are not limited to compact disc, electronic download, and internet streaming.
(II) As used in this subsection (15)(b.5), "digital good" means any item of tangible personal property that is delivered or stored by digital means, including but not limited to video, music, or electronic books.
roperty. Examples of methods used to deliver tangible personal property under current technology include but are not limited to compact disc, electronic download, and internet streaming.
(II) As used in this subsection (15)(b.5), "digital good" means any item of tangible personal property that is delivered or stored by digital means, including but not limited to video, music, or electronic books.
(c) (I) "Tangible personal property", commencing July 1, 2012, shall include computer software if the computer software meets all of the following criteria:
(A) The computer software is prepackaged for repeated sale or license;
(B) The use of the computer software is governed by a tear-open nonnegotiable license agreement; and
(C) The computer software is delivered to the customer in a tangible medium. Computer software is not delivered to the customer in a tangible medium if it is provided through an application service provider, delivered by electronic computer software delivery, or transferred by load and leave computer software delivery.
(II) As used in this paragraph (c), unless the context otherwise requires:
(A) "Application service provider" or "ASP" means an entity that retains custody over or hosts computer software for use by third parties. Users of the computer software hosted by an ASP typically will access the computer software via the internet. The ASP may or may not own or license the computer software, but generally will own and maintain hardware and networking equipment required for the user to access the computer software. Where the ASP owns the computer software, the ASP may charge the user a license fee for the computer software or a fee for maintaining the computer software or hardware used by its customer.
(B) "Computer software" means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.
(C) "Electronic computer software delivery" means computer software transferred by remote telecommunications to the purchaser's computer, where the purchaser does not obtain possession of any tangible medium in the transaction.
(D) "Load and leave computer software delivery" means delivery of computer software to the purchaser by use of a tangible medium where the title to or possession of the tangible medium is not transferred to the purchaser, and where the computer software is manually loaded by the vendor, or the vendor's representative, at the purchaser's location.
(E) "Prepackaged for repeated sale or license" means computer software that is prepackaged for repeated sale or license in the same form to multiple users without modification, and is typically sold in a shrink-wrapped box.
(F) "Tangible medium" means a tape, disk, compact disc, card, or comparable physical medium.
(G) "Tear-open nonnegotiable license agreement" means a license agreement contained on or in the package, which by its terms becomes effective upon opening of the package and accepting the licensing agreement. "Tear-open nonnegotiable license agreement" does not include a written license agreement or contract signed by the licensor and the licensee.
(III) The internalized instruction code that controls the basic operations, such as arithmetic and logic, of the computer causing it to execute instructions contained in system programs is an integral part of the computer and is not normally accessible or modifiable by the user. Such internalized instruction code is considered part of the hardware and considered tangible personal property that is taxable pursuant to section 39-26-104 (1)(a). The fact that the vendor does or does not charge separately for such code is immaterial.
o execute instructions contained in system programs is an integral part of the computer and is not normally accessible or modifiable by the user. Such internalized instruction code is considered part of the hardware and considered tangible personal property that is taxable pursuant to section 39-26-104 (1)(a). The fact that the vendor does or does not charge separately for such code is immaterial.
(IV) If a retailer sells computer software to a Colorado purchaser that is considered tangible personal property taxable pursuant to section 39-26-104 (1)(a) and the Colorado purchaser pays the retailer for a quantity of computer software licenses with the intent to distribute the computer software to any of the purchaser's locations outside of Colorado, the measure of Colorado sales tax due is the total of the license fees associated only with the licenses that are actually used in Colorado. The Colorado purchaser shall provide a written statement to the retailer, attesting to the amount of the license fees associated with Colorado and with points outside of Colorado. The written statement shall relieve the retailer of any liability associated with the proration.
(16) "Tax" means either the tax payable by the purchaser of a commodity or service subject to tax, or the aggregate amount of taxes due from the vendor of such commodities or services during the period for which he is required to report his collections, as the context may require.
(17) "Taxpayer" means any person obligated to account to the executive director of the department of revenue for taxes collected or to be collected under the terms of this article.
(18) "Wholesaler" means a person doing a regularly organized wholesale or jobbing business, and known to the trade as such and selling to retail merchants, jobbers, dealers, or other wholesalers, for the purpose of resale.
(19) (a) "Wholesale sale" means a sale by wholesalers to retail merchants, jobbers, dealers, or other wholesalers for resale and does not include a sale by wholesalers to users or consumers not for resale, and the latter sales shall be deemed retail sales and subject to the provisions of this article.
(b) "Wholesale sale" includes sales of all pre-press preparation printing materials, as defined in subsection (6.7) of this section, that are used by a printer for a specific printing contract where the printed product is sold at retail to a customer accepting delivery within this state.
(c) (I) "Wholesale sale" includes sales of agricultural compounds and spray adjuvants to be consumed by, administered to, or otherwise used in caring for livestock and all sales of semen for agricultural or ranching purposes.
(II) For purposes of this paragraph (c), "agricultural compounds" means:
(A) Insecticides, fungicides, growth-regulating chemicals, enhancing compounds, vaccines, and hormones;
(B) Drugs, whether dispensed in accordance with a prescription or not, that are used for the prevention or treatment of disease or injury in livestock;
(C) Animal pharmaceuticals that have been approved by the food and drug administration.
(III) For purposes of this paragraph (c), "spray adjuvants" means products that are used to increase the effectiveness of a pesticide.
(d) "Wholesale sale" includes sales of pesticides that are registered by the commissioner of agriculture for use in the production of agricultural and livestock products pursuant to the "Pesticide Act", article 9 of title 35, C.R.S., and offered for sale by dealers licensed to sell such pesticides pursuant to section 35-9-115, C.R.S.
(e) "Wholesale sale" includes sales of fertilizer for use in the production of agricultural commodities. For purposes of this subsection (19)(e), "fertilizer" means fertilizer as defined in section 35-12-103 (12), but not including specialty fertilizer as defined in section 35-12-103 (30).
.R.S., and offered for sale by dealers licensed to sell such pesticides pursuant to section 35-9-115, C.R.S.
(e) "Wholesale sale" includes sales of fertilizer for use in the production of agricultural commodities. For purposes of this subsection (19)(e), "fertilizer" means fertilizer as defined in section 35-12-103 (12), but not including specialty fertilizer as defined in section 35-12-103 (30).
(f) "Wholesale sale" includes sales of spray adjuvants for use in the production of agricultural commodities. For purposes of this subsection (19)(f), "spray adjuvants" means products that are used to increase the effectiveness of a pesticide.
(g) For purposes of this subsection (19), "agricultural commodities" does not include products regulated under article 10 of title 44.
(20) (a) Sales to and purchases of tangible personal property by a person engaged in the business of manufacturing, compounding for sale, profit, or use, any article, substance, or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the product or service which is manufactured, compounded, or furnished, and the container, label, or the furnished shipping case thereof, shall be deemed to be wholesale sales and shall be exempt from taxation under this part 1.
(b) As used in paragraph (a) of this subsection (20) with regard to food products, tangible personal property enters into the processing of such products and is therefore exempt from taxation when:
(I) It is intended that such property become an integral or constituent part of a food product which is intended to be sold ultimately at retail for human consumption; or
(II) Such property, whether or not it becomes an integral or constituent part of a food product, is a chemical, solvent, agent, mold, skin casing, or other material; is used for the purpose of producing or inducing a chemical or physical change in a food product or is used for the purpose of placing a food product in a more marketable condition; and is directly utilized and consumed, dissipated, or destroyed, to the extent it is rendered unfit for further use, in the processing of a food product which is intended to be sold ultimately at retail for human consumption.
(21) (a) Sales and purchases of electricity, coal, gas, fuel oil, steam, coke, or nuclear fuel, for use in processing, manufacturing, mining, refining, irrigation, construction, telegraph, telephone, and radio communication, street and railroad transportation services, and all industrial uses, and newsprint and printer's ink for use by publishers of newspapers and commercial printers shall be deemed to be wholesale sales and shall be exempt from taxation under this part 1.
(b) Repealed.
(22) Should a dispute arise between the purchaser and seller as to whether or not any such sale is exempt from taxation, nevertheless the seller shall collect and the purchaser shall pay such tax, and the seller shall thereupon issue to the purchaser a receipt or certificate, on forms prescribed by the executive director of the department of revenue, showing the names of the seller and purchaser, the items purchased, the date, price, amount of tax paid, and a brief statement of the claim of exemption. The purchaser thereafter may apply to the said executive director for a refund of such taxes, and it is the executive director's duty to determine the question of exemption, subject to review by the courts, as provided in section 39-21-105. If any seller fails to collect or purchaser fails to pay the tax levied by this article 26 and on sales on which exemption is disputed, the seller or purchaser commits:
(a) A petty offense if the amount is less than three hundred dollars;
(b) A class 2 misdemeanor if the amount is three hundred dollars or more but less than one thousand dollars;
(c) A class 1 misdemeanor if the amount is one thousand dollars or more but less than two thousand dollars;
he tax levied by this article 26 and on sales on which exemption is disputed, the seller or purchaser commits:
(a) A petty offense if the amount is less than three hundred dollars;
(b) A class 2 misdemeanor if the amount is three hundred dollars or more but less than one thousand dollars;
(c) A class 1 misdemeanor if the amount is one thousand dollars or more but less than two thousand dollars;
(d) A class 6 felony if the amount is more than two thousand dollars but less than five thousand dollars;
(e) A class 5 felony if the amount is five thousand dollars or more but less than twenty thousand dollars;
(f) A class 4 felony if the amount is twenty thousand dollars or more but less than one hundred thousand dollars;
(g) A class 3 felony if the amount is one hundred thousand dollars or more but less than one million dollars; and
(h) A class 2 felony if the amount is one million dollars or more.
(23) Except as provided in section 39-26-713 (1)(a), when right to continuous possession or use for more than three years of any article of tangible personal property is granted under a lease or contract and such transfer of possession would be taxable if outright sale were made, such lease or contract shall be considered the sale of such article, and the tax shall be computed and paid by the vendor upon the rentals paid.
C.R.S. § 39-26-102.5 Change of references from "Internal Revenue Code of 1954" to "Internal Revenue Code of 1986"
39-26-102.5. Change of references from "Internal Revenue Code of 1954" to "Internal Revenue Code of 1986". The change of references in this article from the "Internal Revenue Code of 1954" to the "Internal Revenue Code of 1986" shall not affect any act done or any right accrued or accruing before or after such change, but all rights and liabilities shall continue and may be enforced in the same manner as if such references had not been changed.
C.R.S. § 39-26-103 Licenses - fee - revocation - definition
39-26-103. Licenses - fee - revocation - definition. (1) (a) Except as otherwise provided in sub-subparagraph (A) of subparagraph (IV) of paragraph (b.5) of subsection (9) of this section, it is unlawful for any person to engage in the business of selling at retail without first having obtained a license therefor, which license shall be granted and issued by the executive director of the department of revenue and shall be in force and effect until December 31 of the year following the year in which it is issued, unless sooner revoked. Such license shall be granted or renewed only upon application stating the name and address of the person desiring such a license, the name of such business and the location, including the street number of such business, and such other facts as the executive director may require.
(b) It is the duty of each such licensee on or before January 1 of the second year following the year in which his license is issued or renewed to obtain a renewal thereof if the licensee remains in retail business or liable to account for the tax provided in this part 1. Unless evidence is submitted to the contrary, any account for which a license has been issued which shows no retail sales activity for any period of twelve consecutive months shall not be renewed. Such inactivity shall be considered prima facie evidence that the licensee is not in the business of selling at retail.
(c) For each license issued, a fee of sixteen dollars shall be paid, which fee shall accompany the application together with an additional fifty-dollar deposit. A further fee of sixteen dollars shall be paid for each two-year period or fraction thereof for which said license is renewed. Payment of a fee for such a license issued after June 30 shall be prorated in increments of six months. The fifty-dollar deposit shall be allowed as a credit against the Colorado sales tax to be remitted. Except for licenses issued pursuant to subsection (9)(b) of this section, all licenses issued pursuant to this section shall be renewed on a biennial basis, effective January 1, 1986.
(2) (a) If a retailer makes retail sales at two or more separate places of business in the state, a separate license for each place of business shall be required.
(b) Repealed.
(2.5) (a) If a retailer obtains a license as required in this section in good faith, the retailer provides an address that correctly indicates the location of the business, the department of revenue assigns an incorrect location code to the retailer, and the retailer in good faith collects and remits sales taxes for the local jurisdictions represented by the assigned location code, then notwithstanding this section, section 39-26-105, or section 39-26-118, the retailer is held harmless for any tax, charge, penalty, interest, or fee payable as a result of failing to collect and remit sales taxes for a local jurisdiction due to the incorrect location code.
ailer in good faith collects and remits sales taxes for the local jurisdictions represented by the assigned location code, then notwithstanding this section, section 39-26-105, or section 39-26-118, the retailer is held harmless for any tax, charge, penalty, interest, or fee payable as a result of failing to collect and remit sales taxes for a local jurisdiction due to the incorrect location code.
(b) For purposes of this subsection (2.5), "location code" means the code assigned by the department of revenue to a retailer, based on the business address, when the retailer obtains a sales tax license as required in this section and represents the geographic region of the state and the local sales taxes that the retailer is required to collect and remit for such region, or means any successor system used by the department to identify the local sales taxes that a retailer is required to collect and remit based on the business location.
(3) Each license shall be numbered and shall show the name, residence, and place and character of business of the licensee and shall be posted in a conspicuous place in the place of business for which it is issued. No license shall be transferable.
(4) The executive director of the department of revenue, after reasonable notice and a full hearing, may revoke the license of any person found by the executive director to have violated any provision of this article 26. Any retailer who makes retail sales without securing a license therefor commits a petty offense and shall be punished according to section 18-1.3-503. Any retailer who makes retail sales without a license may also be subject to a civil penalty of fifty dollars per day to a maximum penalty of one thousand dollars. Such penalty shall be assessed by the executive director or the executive director's authorized agent and shall be waived or reduced if such failure to obtain such license is due to reasonable cause and not willful neglect or intent to defraud.
(5) Any finding and order of the executive director revoking the license of any person shall be subject to review by the district court of the district where the business of the licensee is conducted, upon application of the aggrieved party. The procedure for review shall be, as nearly as possible, the same as provided for the review of findings as provided by proceedings in the nature of certiorari.
(6) No license shall be required for any person engaged exclusively in the business of selling commodities which are exempt from taxation under this part 1.
(7) It is the duty of the executive director of the department of revenue, at the time of issuance of any new license for a retailer who makes retail sales, to notify the county treasurer of the county where the new licensee is located of the name and address of the licensee.
(8) (a) Any person operating exclusively as a wholesaler may apply to the department of revenue for a license to engage in the business of selling at wholesale. The application shall state the name and address of the person applying for such license, the name and location of the person's business, including the street number of such business, and such other information as the executive director of the department of revenue may require.
y as a wholesaler may apply to the department of revenue for a license to engage in the business of selling at wholesale. The application shall state the name and address of the person applying for such license, the name and location of the person's business, including the street number of such business, and such other information as the executive director of the department of revenue may require.
(b) A person shall pay a fee of sixteen dollars for each license issued under this subsection (8). If the licensee remains in the wholesale business, the licensee shall renew such license on or before January 1 of the second year following the year of issuance or renewal, but nothing in this section shall be construed to empower the executive director to refuse such renewal except revocation for cause of the licensee's prior license. Payment of a fee for a license issued after June 30 of any year shall be prorated in increments of six months. All licenses issued shall be renewed on a biennial basis, effective January 1, 1986.
(9) (a) A person operating as a charitable organization, as defined in section 39-26-102 (2.5), may apply to the department of revenue for a license to engage in the business of selling at retail. The application shall state the name and address of the person applying for such license, the name and location of the person's organization, including the street number of such organization, and such other information as the executive director of the department of revenue may require.
(b) A person conducting a singular sales event may apply to the department of revenue for a license to engage in the business of selling at retail for a temporary period of time. The application shall state the name and address of the person applying for such license, the name and location of the person's organization, including the street number of such organization, and such other information as the executive director of the department of revenue may require.
(b.5) (I) A person engaged in retail sales at more than one special sales event in any two-year period may apply to the department of revenue for a license to engage in selling at retail at such special sales event over a two-year period. Such special sales event license shall only apply to retail sales made by the person to whom the license is issued at such special sales events and shall not apply to sales at such person's business location or to any other sales. The application for such license shall state the name and address of the person desiring such a license and such other information as the executive director of the department of revenue may require. Except as otherwise provided in sub-subparagraph (A) of subparagraph (IV) of this paragraph (b.5), a person to whom a special sales event license has been issued shall file a separate return and payment of sales taxes for each special sales event at which retail sales are made by such person, which return shall be filed on the twentieth day of the month following the month in which such special sales event began.
(II) Any person who organizes a special sales event shall inform each person making any retail sales at such special sales event of the various taxes and tax rates that apply to retail sales at the special sales event and shall mail to the department within ten days of the last day of such special sales event a list of the name, address, and special sales event license number, if any, of each person making any retail sales at the special sales event.
(III) For purposes of this paragraph (b.5), "special sales event" means an event where retail sales are made by more than three persons at a location other than their normal business location, which event occurs no more than three times in any calendar year.
ist of the name, address, and special sales event license number, if any, of each person making any retail sales at the special sales event.
(III) For purposes of this paragraph (b.5), "special sales event" means an event where retail sales are made by more than three persons at a location other than their normal business location, which event occurs no more than three times in any calendar year.
(IV) (A) Any person engaged in retail sales at a special sales event shall obtain a special sales event license pursuant to the provisions of subparagraph (I) of this paragraph (b.5) unless the person who organizes such special sales event elects to obtain a special sales event license pursuant to sub-subparagraph (B) of this subparagraph (IV) and such person who engages in retail sales at such special sales event elects to remit such sales tax collected to the person who organized such special sales event. Any person engaged in retail sales at a special sales event who has obtained a special sales event license pursuant to the provisions of subparagraph (I) of this paragraph (b.5) may elect to remit sales tax collected at such special sales event to the person who organized such special sales event and to whom a special sales event license has been issued pursuant to sub-subparagraph (B) of this subparagraph (IV).
(B) Any person who organizes a special sales event may apply to the department of revenue for a license for retail sales made at such special sales event. Such special sales event license shall only apply to retail sales made at such special sales event organized by the person to whom the license is issued and shall not apply to any other special sales events or sales. The application for such license shall state the name and address of the person desiring such a license and such other information as the executive director of the department of revenue may require. A person to whom a special sales event license has been issued pursuant to this sub-subparagraph (B) shall file a separate return and shall make payment of sales tax collected by persons making retail sales at such special sales event who have elected to remit such sales tax collections to the person licensed pursuant to the provisions of this sub-subparagraph (B). Such return shall be filed on the twentieth day of the month following the month in which such special sales event began. In addition to the information specified in subparagraph (II) of this paragraph (b.5), any person issued a special sales event license pursuant to this sub-subparagraph (B) shall maintain, at his place of business, a list showing the name and address of each person making any retail sales at such special sales event, the amount of gross retail sales made by such person at such special sales event, and the amount of sales tax collected by such person on such retail sales which are remitted by such licensee.
(c) A person who sells only products which are subject to city or county, but no state, sales tax may petition the department to waive the deposit established in paragraph (c) of subsection (1) of this section.
amount of gross retail sales made by such person at such special sales event, and the amount of sales tax collected by such person on such retail sales which are remitted by such licensee.
(c) A person who sells only products which are subject to city or county, but no state, sales tax may petition the department to waive the deposit established in paragraph (c) of subsection (1) of this section.
(d) An individual having an occasional or isolated sale of tangible personal property is not required to have a Colorado retail sales tax license. Such sales must be made from the private residences of such individuals, and the aggregate dollar amount of such sales may not exceed one thousand dollars for any one calendar year. In addition the following conditions must be met:
(I) Neither the seller nor any member of his household may be engaged in a trade or business where similar items are sold;
(II) An annual report of casual sales must be filed with the department by every individual making such sales, and the sales tax due must be remitted at the time the Colorado income tax return of such person is due as provided in article 22 of this title, on forms provided by the director, showing in detail all such sales made during the year; and
(III) All such returns shall be subscribed by the taxpayer or his agent and shall contain a written declaration that they are being made under the penalties of perjury in the second degree.
(e) In addition, when in the opinion of the executive director it is necessary for the efficient administration of this section to treat any salesman, representative, peddler, or canvasser as the agent of the vendor, distributor, supervisor, or employer under whom he operates or from whom he obtains tangible personal property sold by him or for whom he solicits business, the director may, in his discretion, treat such agent as the vendor jointly responsible with his principal, distributor, supervisor, or employer for the collection and payment over of the tax.
(f) Except as otherwise provided in this paragraph (f), a person shall pay a fee of eight dollars for each license issued under this subsection (9); except that a person shall pay a fee of sixteen dollars for a license issued or renewed under subparagraph (I) of paragraph (b.5) of this subsection (9). Any person to whom a sales tax license has been issued pursuant to paragraph (a) of subsection (1) of this section and to whom a special sales events license has been issued or renewed pursuant to paragraph (b.5) of this subsection (9) shall pay no fee for such new or renewed special sales events license. Payment of a fee for a license issued under paragraph (b.5) of this subsection (9) after June 30 of any year shall be prorated in increments of six months.
(10) Notwithstanding the amount specified for any fee in this section, the executive director of the department of revenue by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director of the department of revenue by rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section 24-75-402 (4), C.R.S.
C.R.S. § 39-26-103.5 Qualified purchaser - direct payment permit number - qualifications
39-26-103.5. Qualified purchaser - direct payment permit number - qualifications. (1) The executive director of the department of revenue may issue a direct payment permit number to any person that submits an application to the executive director demonstrating that:
(a) For the preceding twelve-month period, such person has purchased in Colorado in the aggregate at least seven million dollars of commodities, services, or tangible personal property that are subject to the tax imposed by this article. Purchases of commodities or tangible personal property to be erected upon or affixed to real property, including, but not limited to, building and construction materials and fixtures, shall be excluded from the aggregate total of purchases of commodities, services, or tangible personal property described in this paragraph (a).
(b) (I) Except as provided in subsection (2) of this section, if such person has been subject to the collection, remittance, or reporting requirements imposed by this article or any other article in this title administered by the department of revenue for the preceding three years, such person timely filed the required returns and timely remitted the tax shown due on such returns during said three-year period; or
(II) If such person has been subject to the collection, remittance, or reporting requirements imposed by this article or any other article in this title administered by the department of revenue for less than the three preceding years, for the period beginning on the date when such person became subject to such requirements, such person timely filed the required returns and timely remitted the tax shown due on such returns; and
(c) Such person has in place an accounting system, acceptable to the executive director of the department of revenue, that will enable the department to fully and accurately collect and allocate to municipalities, counties, and other local taxing entities all sales taxes that the department collects for such municipalities, counties, and other local taxing entities.
(2) The executive director may waive the requirements of paragraph (b) of subsection (1) of this section if the person submitting the application can show that any failure to comply with such collection, remittance, or reporting requirements was due to reasonable cause.
(3) Nothing in subsection (1) of this section shall be construed to require that a person must be subject to the collection, remittance, or reporting requirements imposed by this article in order to obtain a direct payment permit number.
(4) A person shall become a qualified purchaser upon receipt of a direct payment permit number.
(5) A direct payment permit number shall be in force and effect until December 31 of the third year following the year in which it is issued, unless sooner revoked. Such permit number shall be granted or renewed only upon the filing of an application stating the information described in subsection (1) of this section.
(6) The executive director of the department of revenue may revoke the direct payment permit number of a qualified purchaser that has violated any provision of this article. The executive director shall give a notice of revocation to such qualified purchaser by first-class mail pursuant to section 39-21-105.5. Any such revocation may be appealed by the qualified purchaser within thirty days of receipt of the notice of revocation together with a request for a hearing on such revocation before the executive director or the executive director's designee. The executive director shall promulgate rules specifying the procedures for a revocation appeal hearing. A revocation appeal hearing shall take place within a reasonable time after receipt of the request for hearing by the executive director. The executive director shall issue a finding upholding the revocation or reinstating the direct payment permit number within a reasonable time after the revocation appeal hearing.
C.R.S. § 39-26-104 Property and services taxed - definitions
39-26-104. Property and services taxed - definitions. (1) There is levied and there shall be collected and paid a tax in the amount stated in section 39-26-106 as follows:
(a) On the purchase price paid or charged upon all sales and purchases of tangible personal property at retail, including, but not limited to, the amount charged for mainframe computer access, photocopying, and packing and crating;
(b) (I) In the case of retail sales involving the exchange of property, on the purchase price paid or charged, including the fair market value of the property exchanged at the time and place of the exchange, excluding, however, from the consideration or purchase price, the fair market value of the exchanged property if:
(A) Such exchanged property is to be sold thereafter in the usual course of the retailer's business; or
(B) Such exchanged property is a vehicle and is exchanged for another vehicle and both vehicles are subject to licensing, registration, or certification under the laws of this state, including, but not limited to, vehicles operating upon public highways, off-highway recreation vehicles, watercraft, and aircraft.
(II) The exchange of three or more vehicles of the same type by any person in any calendar year in transactions subject to the provisions of this article shall be prima facie evidence that such person is engaged in the business of selling vehicles of the type involved in such transactions and that he is thereby subject to any licensing requirements necessary to engage in such activity.
(c) (I) Upon telephone and telegraph services, whether furnished by public or private corporations or enterprises for all intrastate telephone and telegraph service. On or after August 1, 2002, mobile telecommunications service shall be subject to the tax imposed by this section only if the service is provided to a customer whose place of primary use is within Colorado and the service originates and terminates within the same state. In accordance with the "Mobile Telecommunications Sourcing Act", 4 U.S.C. secs. 116 to 126, as amended, on or after August 1, 2002, mobile telecommunications service provided to a customer whose place of primary use is outside the borders of the state of Colorado is exempt from the tax imposed by this section.
(II) (A) If a customer believes that a tax, charge, or fee assessed by the state in the customer's bill for a mobile telecommunications service is erroneous, or that an assignment of place of primary use or taxing jurisdiction on said bill is incorrect, the customer shall notify the home service provider in writing within two years after the date the bill was issued. The notification from the customer shall include the street address for the customer's place of primary use, the account name and number for which the customer seeks a correction, a description of the alleged error, and any other information that the home service provider may require.
(B) No later than sixty days after receipt of notice from a customer pursuant to sub-subparagraph (A) of this subparagraph (II), the home service provider shall review the information submitted by the customer and any other relevant information and documentation to determine whether an error was made. If the home service provider determines that an error was made, the home service provider shall refund or credit to the customer any tax, fee, or charge erroneously collected from the customer for a period not to exceed two years. If the home service provider determines that no error was made, the home service provider shall provide a written explanation of its determination to the customer.
made. If the home service provider determines that an error was made, the home service provider shall refund or credit to the customer any tax, fee, or charge erroneously collected from the customer for a period not to exceed two years. If the home service provider determines that no error was made, the home service provider shall provide a written explanation of its determination to the customer.
(C) Any customer that believes a tax, charge, or fee assessed by the state in the customer's bill for mobile telecommunications services is erroneous, or that an assignment of place of primary use or taxing jurisdiction on said bill is incorrect, may file a claim in the appropriate district court only after complying with the provisions of this subparagraph (II).
(III) As used in this paragraph (c), unless the context otherwise requires:
(A) "Act" means the federal "Mobile Telecommunications Sourcing Act", 4 U.S.C. secs. 116 to 126, as amended.
(B) "Customer" means customer as defined in section 124 (2) of the act.
(C) "Home service provider" means home service provider as defined in section 124 (5) of the act.
(D) "Mobile telecommunications service" means mobile telecommunications service as defined in section 124 (7) of the act.
(E) "Place of primary use" means the place of primary use as defined in section 124 (8) of the act.
(F) "Taxing jurisdiction" means taxing jurisdiction as defined in section 124 (12) of the act.
(IV) For telephone and telegraph services provided on or after July 1, 2003, when nontaxable services are aggregated with and not separately stated from taxable services, the provider of such services shall collect the tax imposed by this article only on intrastate telephone and telegraph services. The provider of such services shall maintain for three years documentation of the services provided that are taxable and nontaxable. Such documentation is subject to audit, and the service provider shall be liable for any uncollected tax. A service provider shall notify the executive director of the department of revenue of the percentages of taxable and nontaxable services in a package of aggregated services within thirty days of use on any invoice.
(d) Repealed.
(d.1) Effective July 1, 1980, for gas and electric service, whether furnished by municipal, public, or private corporations or enterprises, for gas and electricity furnished and sold for commercial consumption and not for resale, upon steam when consumed or used by the purchaser and not resold in original form whether furnished or sold by municipal, public, or private corporations or enterprises;
(d.2) Repealed.
(e) Upon the amount paid for food or drink served or furnished in or by restaurants, cafes, lunch counters, cafeterias, hotels, social clubs, nightclubs, cabarets, resorts, snack bars, caterers, carryout shops, and other like places of business at which prepared food or drink is regularly sold, including sales from pushcarts, motor vehicles, and other mobile facilities. Cover charges shall be included as part of the amount paid for such food or drink. However, meals provided to employees of the places mentioned in this paragraph (e) at no charge or at a reduced charge shall be exempt from taxation under the provisions of this part 1.
ess at which prepared food or drink is regularly sold, including sales from pushcarts, motor vehicles, and other mobile facilities. Cover charges shall be included as part of the amount paid for such food or drink. However, meals provided to employees of the places mentioned in this paragraph (e) at no charge or at a reduced charge shall be exempt from taxation under the provisions of this part 1.
(f) On the entire amount charged to any person for rooms or accommodations as designated in section 39-26-102 (11).
(2) Repealed.
(3) (a) Except as provided in subsections (3)(b) and (3)(c) of this section, for purposes of determining where a sale of tangible personal property, commodities, or services is made, the following rules apply:
(I) If tangible personal property, commodities, or services are received by the purchaser at a business location of the seller, the sale is sourced to that business location;
(II) If tangible personal property, commodities, or services are not received by the purchaser at a business location of the seller, the sale is sourced to the location where receipt by the purchaser occurs, including the location indicated by instructions for delivery to the purchaser, if that location is known to the seller;
(III) If subsections (3)(a)(I) and (3)(a)(II) of this section do not apply, the sale is sourced to the location indicated by an address for the purchaser that is available from the business records of the seller that are maintained in the ordinary course of the seller's business, when use of this address does not constitute bad faith;
(IV) If subsections (3)(a)(I), (3)(a)(II), and (3)(a)(III) of this section do not apply, the sale is sourced to the location indicated by an address for the purchaser obtained during the consummation of the sale, including, if no other address is available, the address of a purchaser's payment instrument, when use of this address does not constitute bad faith; or
(V) If subsections (3)(a)(I), (3)(a)(II), (3)(a)(III), and (3)(a)(IV) of this section do not apply, or if the seller is without sufficient information to apply the rules set forth in subsections (3)(a)(I), (3)(a)(II), (3)(a)(III), and (3)(a)(IV) of this section, the sale is sourced to the location indicated by the address from which the tangible personal property, commodity, or service was shipped.
(b) (I) The lease or rental of tangible personal property or commodities, but not property identified in subsection (3)(b)(II) or (3)(b)(III) of this section, not leases or rentals based on a lump sum or accelerated basis, and not on the acquisition of property for lease, are sourced as follows:
(A) For a lease or rental that requires recurring periodic payments, the first periodic payment is sourced the same as a retail sale in accordance with subsection (3)(a) of this section. Periodic payments made subsequent to the first payment are sourced to the primary property location for each period covered by the payment. The primary property location is as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, when use of this address does not constitute bad faith. The property location is not altered by intermittent use at different locations, such as use of business property that accompanies employees on business trips and service calls.
(B) For a lease or rental that does not require periodic payments, the payment is sourced the same as a retail sale in accordance with subsection (3)(a) of this section.
(II) The lease or rental of motor vehicles, trailers, semi-trailers, or aircraft that do not qualify as transportation equipment is sourced as follows:
ess property that accompanies employees on business trips and service calls.
(B) For a lease or rental that does not require periodic payments, the payment is sourced the same as a retail sale in accordance with subsection (3)(a) of this section.
(II) The lease or rental of motor vehicles, trailers, semi-trailers, or aircraft that do not qualify as transportation equipment is sourced as follows:
(A) For a lease or rental that requires recurring periodic payments, each periodic payment is sourced to the primary property location. The primary property location is as indicated by an address for the property provided by the lessee that is available to the lessor from its records maintained in the ordinary course of business, when use of this address does not constitute bad faith. The location does not change by intermittent use at different locations.
(B) For a lease or rental that does not require recurring periodic payments, the payment is sourced the same as a retail sale in accordance with subsection (3)(a) of this section.
(III) The lease or rental of transportation equipment is sourced in the same manner as a retail sale in accordance with subsection (3)(a) of this section.
(c) Repealed.
(d) As used in this subsection (3), unless the context otherwise requires:
(I) "Purchaser" may include a donee who is designated as such by the purchaser.
(II) "Receipt" or "receive" means taking possession of tangible personal property or commodities or making first use of services, but does not include possession by a shipping company on behalf of the purchaser.
(III) "Transportation equipment" means:
(A) Locomotives and railcars that are utilized for the carriage of persons or property in interstate commerce;
(B) Trucks and truck-tractors with a gross vehicle weight rating of ten thousand one pounds or greater, trailers, semi-trailers, or passenger buses that are registered under the international registration plan and operated under authority of a carrier authorized and certificated by the United States department of transportation or another federal or foreign authority to engage in the carriage of persons or property in interstate or foreign commerce;
(C) Aircraft that are operated by air carriers authorized and certificated by the United States department of transportation or another federal or foreign authority to engage in the carriage of persons or property in interstate or foreign commerce; and
(D) Containers designed for use on and component parts attached or secured on the items set forth in subsections (3)(d)(III)(A) to (3)(d)(III)(C) of this section.
C.R.S. § 39-26-105 Vendor liable for tax - definitions - repeal
39-26-105. Vendor liable for tax - definitions - repeal. (1) (a) (I) (A) Except as provided in subsections (1)(a)(I)(B), (1.3), and (1.5) of this section, every retailer shall be liable and responsible for the payment of an amount equivalent to the tax imposed by section 39-26-106 (1).
(B) A retailer who has received in good faith from a qualified purchaser a direct payment permit number issued pursuant to section 39-26-103.5 shall not be liable or responsible for the collection and remittance of the tax imposed by this article on any sale made to the qualified purchaser that is paid for directly from such qualified purchaser's funds and not the personal funds of any individual.
(II) Repealed.
(b) Every retailer shall, before the twentieth day of each month, make a return to the executive director of the department of revenue for the preceding calendar month. The executive director shall determine what information the returns must contain, how the returns must be made, and the type of forms that must be used.
(c) (I) Every retailer shall remit, along with the return required in subsection (1)(b) of this section, an amount equivalent to the percentage on sales as specified in subsection (1)(a)(I) of this section to the executive director of the department of revenue, less an amount as set forth in subsection (1)(c)(II) or (1)(d) of this section to cover the retailer's expense in the collection and remittance of said tax.
(II) For sales made prior to January 1, 2020, the amount retained by a retailer to cover the retailer's expense in collecting and remitting tax pursuant to this section is three and one-third percent of all sales tax reported.
(III) If any retailer is delinquent in remitting said tax, other than in unusual circumstances shown to the satisfaction of the executive director of the department of revenue, the retailer shall not be allowed to retain any amounts under this subsection (1)(c) or subsection (1)(d) of this section to cover such retailer's expense in collecting and remitting said tax, and an amount equivalent to the said percentage, plus the amount of any local vendor expense that may be allowed by the local government to the vendor, shall be remitted to the executive director by any such delinquent vendor. Any local vendor expense remitted to the executive director shall be deposited to the state general fund.
(d) (I) (A) For sales made on or after January 1, 2020, except as provided in subsection (1)(d)(I)(B) of this section, the amount retained by a retailer to cover the retailer's expense in collecting and remitting tax in accordance with this section is four percent of the tax reported; except that a retailer shall not retain more than one thousand dollars in any filing period.
(B) For sales made on and after January 1, 2023, but before January 1, 2024, the amount retained by a retailer to cover the retailer's expense in collecting and remitting tax in accordance with this section for any filing period that the retailer's total taxable sales are less than or equal to one hundred thousand dollars is five and three-tenths percent of the tax reported; except that a retailer should not retain more than one thousand dollars in any filing period. This subsection (1)(d)(I)(B) is repealed, effective January 1, 2032.
(II) A retailer with multiple locations is treated as a single retailer for purposes of this subsection (1)(d) and is required to register all locations under one account with the department of revenue.
(III) (A) If a retailer is permitted to retain an amount to cover the retailer's expense in collecting and remitting local sales tax that is the same amount as permitted by the state under this section, then such amount is the amount that was permitted as of December 31, 2019.
(B) This subsection (1)(d)(III) is repealed, effective July 1, 2025.
s under one account with the department of revenue.
(III) (A) If a retailer is permitted to retain an amount to cover the retailer's expense in collecting and remitting local sales tax that is the same amount as permitted by the state under this section, then such amount is the amount that was permitted as of December 31, 2019.
(B) This subsection (1)(d)(III) is repealed, effective July 1, 2025.
(IV) Beginning January 1, 2022, a retailer is not permitted to retain any money to cover the retailer's expenses in collecting and remitting tax in accordance with this section for any filing period that the retailer's total taxable sales were greater than one million dollars.
(1.3) (a) As used in this subsection (1.3), unless the context otherwise requires:
(I) "Alcoholic beverages drinking places industry" means establishments that may make sandwiches or light snacks available for consumption, that are open to the public, and are known as bars, taverns, sales rooms, vintner's restaurants, brew pubs, distillery pubs, nightclubs, or drinking places primarily engaged in preparing and serving alcoholic beverages for immediate, on-premise consumption. "Alcoholic beverages drinking places industry" does not mean breweries, distilleries, wineries, and retail liquor, or drug stores that offer tastings.
(I.3) "Catering industry" means establishments, not including the mobile food services industry or the food services contractor industry, that are primarily engaged in providing single event-based food services for events such as graduation parties, wedding receptions, business or retirement luncheons, or trade shows and that have equipment and vehicles to transport meals and snacks to events or to prepare food at an off-premise site. "Catering industry" includes banquet halls with catering staff.
(I.5) "Food services contractor industry" means establishments, not including the catering industry, that are primarily engaged in providing food services, for the convenience of the contracting organization or the contracting organization's customers, at institutional, governmental, commercial, or industrial locations of others, based on contractual arrangements with these types of organizations for a specified period of time, such as airline food service contractors; food concession contractors at sporting, entertainment, or convention facilities; or cafeteria food services contractors at schools, hospitals, or government offices.
(I.7) "Hotel-operated restaurant, bar, or catering service" means a restaurant or other eating places industry establishment or an alcoholic beverages drinking places industry establishment located on the premises of an establishment primarily engaged in providing short-term lodging facilities and known as a hotel, motor hotel, resort hotel, motel, bed-and-breakfast inn, tourist home, guest house, youth hostel, or housekeeping cabin, including a hotel facility with a casino on the premises. "Hotel-operated restaurant, bar, or catering service" includes the sale of single event-based food services described in subsection (1.3)(a)(I.3) of this section on the premises of the establishment. "Hotel-operated restaurant, bar, or catering service" does not include sales of rooms or accommodations, gifts and sundries, recreational services, conference rooms, convention services, laundry services, parking, and other services.
(II) "Mobile food services industry" means retailers primarily engaged in preparing and serving meals, snacks, or nonalcoholic beverages for immediate consumption from motorized vehicles or nonmotorized carts. "Mobile food services industry" does not mean retailers delivering food prepared only by third parties and does not mean retailers shipping meal kits, heat-at-home meals, or other unprepared food to consumers for home consumption.
ns retailers primarily engaged in preparing and serving meals, snacks, or nonalcoholic beverages for immediate consumption from motorized vehicles or nonmotorized carts. "Mobile food services industry" does not mean retailers delivering food prepared only by third parties and does not mean retailers shipping meal kits, heat-at-home meals, or other unprepared food to consumers for home consumption.
(III) (A) "Qualifying retailer" means, for each month specified in subsection (1.3)(a)(V)(A) of this section, a retailer doing business in the state that timely files sales tax returns as required under subsection (1)(b) of this section and section 39-26-109, and that operates in the alcoholic beverages drinking places industry, the restaurant and other eating places industry, or the mobile food services industry.
(B) "Qualifying retailer" means, for each month specified in subsection (1.3)(a)(V)(B) of this section, a retailer doing business in the state that timely files sales tax returns as required under subsection (1)(b) of this section and section 39-26-109, and that operates in the alcoholic beverages drinking places industry, the catering industry, the food services contractor industry, the restaurant and other eating places industry, or the mobile food services industry, or that operates a hotel-operated restaurant, bar, or catering service.
(C) "Qualifying retailer" means, for the specified sales tax period in subsection (1.3)(a)(V)(C) of this section, a retailer doing business in the state that timely files sales tax returns as required under subsection (1)(b) of this section and section 39-26-109 and that operates in the alcoholic beverages drinking places industry, the catering industry, the food services contractor industry, the restaurant and other eating places industry, or the mobile food services industry, or that operates a hotel-operated restaurant, bar, or catering service.
(IV) "Restaurant and other eating places industry" means establishments, not including establishments selling food from mobile vehicles, establishments presenting live theatrical productions and other entertainment facilities, hotels or bed and breakfast establishments, specialty food stores, vending machines, caterers or other food service contractors, or private cafeterias at workplaces, universities, or hospitals, that are open to the public, are known as restaurants, cafes, lunch counters, and carryout shops, and are primarily engaged in one of the following:
(A) Providing prepared food services at a fixed, physical premises to patrons who order and are served while seated, and who pay after eating;
(B) Providing prepared food services at a fixed, physical premises to patrons who generally order or select items and who pay before eating; or
(C) Preparing or serving specialty snacks or nonalcoholic beverages at a fixed, physical premises to patrons who pay before eating for consumption on or near the premises.
(V) (A) After December 7, 2020, but before June 14, 2021, "specified sales tax period" means sales made in November 2020, December 2020, January 2021, and February 2021, for which monthly returns must be filed pursuant to subsection (1)(b) of this section, on December 21, 2020, January 20, 2021, February 22, 2021, and March 22, 2021, respectively.
(B) On and after June 14, 2021, but before June 3, 2022, "specified sales tax period" means sales made in June 2021, July 2021, and August 2021, for which monthly returns must be filed pursuant to subsection (1)(b) of this section, on July 20, 2021, August 20, 2021, and September 20, 2021, respectively.
(C) On and after June 3, 2022, "specified sales tax period" means sales made in July 2022, August 2022, and September 2022, for which monthly returns must be filed pursuant to subsection (1)(b) of this section, on August 20, 2022, September 20, 2022, and October 20, 2022, respectively.
t to subsection (1)(b) of this section, on July 20, 2021, August 20, 2021, and September 20, 2021, respectively.
(C) On and after June 3, 2022, "specified sales tax period" means sales made in July 2022, August 2022, and September 2022, for which monthly returns must be filed pursuant to subsection (1)(b) of this section, on August 20, 2022, September 20, 2022, and October 20, 2022, respectively.
(VI) "State net taxable sales" means all sales made by the qualifying retailer during the specified sales tax period of tangible personal property, commodities, and services as specified in section 39-26-104, less any deductions and exemptions authorized in this article 26, without regard to the deduction authorized in this subsection (1.3).
(b) (I) A qualifying retailer in the alcoholic beverages drinking places industry, in the restaurant and other eating places industry, in the food services contractor industry, or operating a hotel-operated restaurant, bar, or catering service may deduct from state net taxable sales the lesser of state net taxable sales or seventy thousand dollars and retain the resulting sales tax collected for each month specified in subsection (1.3)(a)(V) of this section.
(II) For each month specified in subsection (1.3)(a)(V) of this section, one deduction described in subsection (1.3)(b)(I) of this section is allowed per month for each of up to five fixed physical premises that are properly licensed under section 39-26-103 (2)(a), to a qualifying retailer in the alcoholic beverages drinking places industry, in the restaurant and other eating places industry, in the food services contractor industry, or operating a hotel-operated restaurant, bar, or catering service. No deduction is allowed for:
(A) Nonphysical sites that are established for purposes of reporting sales delivered into a taxing area; or
(B) Any temporary place of business or special event.
(c) A qualifying retailer in the mobile food services industry may deduct from state net taxable sales the lesser of aggregate state net taxable sales for all sites or seventy thousand dollars per motorized vehicle or nonmotorized cart, not to exceed five motorized vehicles or nonmotorized carts, and retain the resulting state sales tax collected for each month specified in subsection (1.3)(a)(V)(A) of this section.
(c.5) A qualifying retailer in the catering industry may deduct from state net taxable sales the lesser of aggregate state net taxable sales for all events or seventy thousand dollars, and retain the resulting state sales tax collected for each month specified in subsection (1.3)(a)(V) of this section.
(d) If a qualifying retailer is in both the restaurant and other eating places industry and the mobile food services industry, the qualifying retailer may claim the deduction for no more than five physical sites and for no more than five motorized vehicles and nonmotorized carts.
(e) The qualifying retailer must continue to hold state sales taxes in excess of the amount retained in trust until paid to the department of revenue as specified in section 39-26-118.
ating places industry and the mobile food services industry, the qualifying retailer may claim the deduction for no more than five physical sites and for no more than five motorized vehicles and nonmotorized carts.
(e) The qualifying retailer must continue to hold state sales taxes in excess of the amount retained in trust until paid to the department of revenue as specified in section 39-26-118.
(f) The deduction and sales tax retention allowed in this subsection (1.3) applies to state net taxable sales only. Qualifying retailers may not retain payment of city, county, or special district sales taxes collected by the department of revenue. Nothing in this subsection (1.3) prevents any local government from rebating sales taxes collected by qualifying retailers pursuant to a local ordinance.
(f.5) To the extent information is available and without changing the sales tax return form, the department of revenue shall include a report to its committee of reference at a hearing held in January 2022 pursuant to section 2-7-203 (2)(a) of the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" specifying:
(I) The sales tax revenue the state did not collect as a result of the deduction allowed in this subsection (1.3); and
(II) How many retailers elected to take advantage of the deduction allowed in this subsection (1.3).
(f.7) To the extent that information is available and without changing the sales tax return form, the department of revenue shall include a report to its committee of reference at a hearing held in January 2023 pursuant to section 2-7-203 (2)(a) of the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" specifying:
(I) The amount of sales tax revenue that the state did not collect in 2022 as a result of the deduction allowed in this subsection (1.3); and
(II) How many retailers elected to take advantage of the deduction allowed in this subsection (1.3) in 2022.
(g) This subsection (1.3) is repealed, effective December 31, 2026.
(1.5) (a) With respect to sales of tangible personal property, commodities, or services made by marketplace sellers in or through a marketplace facilitator's marketplace, a marketplace facilitator has all of the liabilities, obligations, and rights of a retailer or vendor under subsection (1) of this section and this article 26 whether or not the marketplace seller, because the marketplace seller is a multichannel seller:
(I) Has or is required to have a license under section 39-26-103; or
(II) Would have been required to collect and remit tax under this article 26 had the sale not been made in or through the marketplace.
(b) The liabilities, obligations, and rights set forth in subsection (1.5)(a) of this section are in addition to any requirements the marketplace facilitator has under subsection (1) of this section if it also offers for sale tangible personal property, commodities, or services through other means.
llect and remit tax under this article 26 had the sale not been made in or through the marketplace.
(b) The liabilities, obligations, and rights set forth in subsection (1.5)(a) of this section are in addition to any requirements the marketplace facilitator has under subsection (1) of this section if it also offers for sale tangible personal property, commodities, or services through other means.
(c) Except as provided in subsection (3)(b) of this section, a marketplace seller, with respect to sales of tangible personal property, commodities, or services made in or through a marketplace facilitator's marketplace, does not have the liabilities, obligations, or rights of a retailer or vendor under subsection (1) of this section and this article 26 if the marketplace seller can show that such sale was facilitated by a marketplace facilitator:
(I) With whom the marketplace seller has a contract that explicitly provides that the marketplace facilitator will collect and remit sales tax on all sales subject to tax under this article 26; or
(II) From whom the marketplace seller requested and received in good faith a certification that the marketplace facilitator is registered to collect sales tax and will collect sales tax on all sales subject to tax under this article 26 made in or through the marketplace facilitator's marketplace.
(2) The executive director of the department of revenue may extend the time for making a return and paying the taxes due under such reasonable rules as the executive director may prescribe, but no such extension shall be for a greater period than is provided for in section 39-26-109.
(3) (a) Except as provided in subsection (3)(b) of this section, the burden of proving that any retailer is exempt from collecting the tax on any goods sold and paying the same to the executive director of the department of revenue, or from making such returns, shall be on the retailer under such reasonable requirements of proof as the executive director may prescribe.
(b) (I) If a marketplace facilitator demonstrates to the satisfaction of the executive director of the department of revenue that the marketplace facilitator made a reasonable effort to obtain accurate information regarding the obligation to collect tax from the marketplace seller and that the failure to collect tax on any tangible personal property, commodities, or services sold was due to incorrect information provided to the marketplace facilitator by the marketplace seller, then the marketplace facilitator, but not the marketplace seller, is relieved of liability under this section for the amount of the tax the marketplace facilitator failed to collect, plus applicable penalties and interest.
(II) If a marketplace facilitator is relieved of liability under subsection (3)(b)(I) of this section, the marketplace seller is liable under this section for the amount of tax the marketplace facilitator failed to collect, plus applicable penalties and interest.
(III) This subsection (3)(b) does not apply to any sale by a marketplace facilitator that is not facilitated on behalf of a marketplace seller or that is facilitated on behalf of a marketplace seller who is an affiliate of the marketplace facilitator.
ce seller is liable under this section for the amount of tax the marketplace facilitator failed to collect, plus applicable penalties and interest.
(III) This subsection (3)(b) does not apply to any sale by a marketplace facilitator that is not facilitated on behalf of a marketplace seller or that is facilitated on behalf of a marketplace seller who is an affiliate of the marketplace facilitator.
(4) Every retailer conducting a business in which the transaction between the retailer and the consumer consists of the supplying of tangible personal property and services in connection with the maintenance or servicing of the same shall be required to pay the taxes levied under this article upon the full contract price, unless application is made to the executive director of the department of revenue for permission to use a percentage basis of reporting the tangible personal property sold and the services supplied under such contract. The executive director is authorized to determine the percentage based upon the ratio of the tangible personal property included in the consideration as it bears to the total of the consideration paid under said combination contract or sale that is subject to the sales tax levied under the provisions of this part 1. This section shall not be construed to include items upon which the sales tax is imposed on the full purchase price as designated in section 39-26-102 (12).
(5) (a) A qualified purchaser may provide a direct payment permit number to a retailer that is liable and responsible for collecting and remitting the tax imposed by this article on any sale made to the qualified purchaser. A qualified purchaser holding a direct payment permit number shall, before the twentieth day of each month subsequent to the month in which any sale to the qualified purchaser was made for which the qualified purchaser's direct payment permit number was used, make a return and remit directly to the executive director of the department of revenue the amount of such tax owing on all such sales to the qualified purchaser made in the preceding month. Such returns of the qualified purchaser or duly authorized agent shall contain such information and be made in such manner and upon such forms as the executive director shall prescribe.
(b) Repealed.
(c) From the amount of the tax required to be remitted pursuant to subsection (5)(a) of this section, a qualified purchaser shall be entitled to retain the amount specified in subsection (1)(c)(II) or (1)(d) of this section that a retailer would otherwise be entitled to retain to cover the retailer's expense in collecting and remitting the tax imposed by this article 26 if the qualified purchaser had not provided a direct payment permit number to the retailer.
C.R.S. § 39-26-105.2 Remittance of tax - GIS - vendor held harmless - requirements of GIS database - rules - legislative declaration - definitions
39-26-105.2. Remittance of tax - GIS - vendor held harmless - requirements of GIS database - rules - legislative declaration - definitions. (1) As used in this section, "GIS database" means the geographic information system database that the department of revenue owns and maintains, that meets the defined scope of work set forth in the request for solicitation, and is provided to vendors to determine the jurisdictions to which tax is owed and to calculate appropriate sales and use tax rates for individual addresses.
(2) The department of revenue shall immediately notify vendors when the GIS database is online, tested, and verified by the department of revenue to be operational, supported, and available for use. Notification to vendors may be provided in any way that the department deems appropriate and must be accomplished within existing resources.
(3) [Editor's note: This version of subsection (3) is effective until July 1, 2025.] Any vendor that collects and remits sales tax to the department of revenue as provided by law may use the GIS database. Any vendor that directly uses the data contained in the GIS database, or uses data from a third-party database that is verified to use the most recent information provided by the GIS database, to determine the jurisdictions to which tax is owed is held harmless for any tax, charge, or fee liability to any taxing jurisdiction that otherwise would be due solely as a result of an error or omission in the GIS database data.
(3) [Editor's note: This version of subsection (3) is effective July 1, 2025.] Any vendor that collects and remits sales tax to the department of revenue as provided by law, including any local sales or use tax pursuant to part 2 of title 29, may use the GIS database. Any vendor that directly uses the data contained in the GIS database, or uses data from a third-party database that is verified to use the most recent information provided by the GIS database, to determine the jurisdictions to which tax is owed is held harmless for any tax, charge, or fee liability to any taxing jurisdiction that otherwise would be due solely as a result of an error or omission in the GIS database data.
(3.5) (a) The general assembly finds and declares that:
(I) The task force has overseen the implementation of an electronic sales and use tax simplification system, which is commonly known as "SUTS" and includes the GIS database, in furtherance of the general assembly's goal to address the complex and cumbersome nature of Colorado's unique state and local sales tax system, which is a matter of statewide concern;
(II) SUTS and the GIS database are designed, among other things, to assist businesses operating in multiple taxing jurisdictions in Colorado by providing them with a single, reliable source of sales and use tax information for the state and local taxing jurisdictions, including any county, city and county, or municipality governed by a home rule charter;
(III) While the sales and use tax bases and rates of the state and local taxing jurisdictions and the jurisdictional boundaries of such local taxing jurisdictions are subject to change over time, SUTS was specifically designed in anticipation of such changes pursuant to section 39-26-802.5 (1)(c)(IV) and (1)(c)(V);
(IV) It is a matter of statewide concern to ensure that SUTS, including the GIS database, continues to serve and evolve as an effective simplification tool upon which businesses can rely in navigating Colorado's unique and complex state and local sales tax system;
(V) Improving SUTS in this manner will decrease filing complexity, make audits of retailers more uniform for all state and local taxing jurisdictions, help streamline and reduce administrative burdens, and, consequently, encourage more businesses to begin or continue to operate across multiple taxing jurisdictions across this state; and
orado's unique and complex state and local sales tax system;
(V) Improving SUTS in this manner will decrease filing complexity, make audits of retailers more uniform for all state and local taxing jurisdictions, help streamline and reduce administrative burdens, and, consequently, encourage more businesses to begin or continue to operate across multiple taxing jurisdictions across this state; and
(VI) Any business that uses the data collected in SUTS, inclusive of data collected in the GIS database, to determine the local taxing jurisdictions to which tax is owed should be held harmless in an audit by the state or any local taxing jurisdiction, including any county, city and county, or municipality governed by a home rule charter for any tax, charge, or fee liability to any local taxing jurisdiction that would be due solely as a result of an error or omission in the SUTS or GIS database data.
(b) As used in this subsection (3.5), unless the context otherwise requires:
(I) "Electronic sales and use tax simplification system" means the electronic system described in section 39-26-802.7 for the collection and remittance of sales and use taxes.
(II) "Local taxing jurisdiction" means a city, town, municipality, county, special district, or authority authorized to levy a sales or use tax pursuant to title 24, 25, 29, 30, 31, 32, 37, 42, or 43, and any county, city and county, or municipality governed by a home rule charter that uses the electronic sales and use tax simplification system.
(III) "Tax rate" means the general sales or use tax rate imposed by a local taxing jurisdiction, without regard to any local sales or use tax exemption or special tax rate.
(c) (I) Any vendor that uses the data contained in the GIS database to determine the tax rate and the local taxing jurisdictions to which sales or use tax is owed is held harmless in an audit by any local taxing jurisdiction for any tax, charge, or fee liability to the local taxing jurisdiction that otherwise would be due solely as a result of an error or omission in the GIS database data.
(II) To be held harmless pursuant to subsection (3.5)(c)(I) of this section, a vendor must collect, retain, and produce upon request documentation reasonably sufficient to demonstrate the vendor's proper use of and reliance on the GIS database data to determine the tax rate and local taxing jurisdiction to which tax was owed.
(III) A vendor that queries the GIS database using an incomplete or erroneous address shall not be held harmless pursuant to subsection (3.5)(c)(I) of this section for the failure to pay any tax, charge, or fee liability to a local taxing jurisdiction.
(d) The department of revenue, or its third-party contractor, shall update the data contained in the GIS database, including jurisdictional boundaries and tax rates, within thirty days of the receipt by the department of revenue of updated or corrected data from a local taxing jurisdiction, and shall maintain the GIS database data in an accurate condition in accordance with subsection (4) of this section. The department shall provide a reasonably convenient method for local taxing jurisdictions to inform the department of any errors in the GIS database data.
(4) [Editor's note: This version of subsection (4) is effective until July 1, 2025.] The department of revenue shall ensure that the GIS database data, including jurisdictional boundaries and tax rates, is at least ninety-five percent accurate based on a statistically valid sample of addresses from the database, or based on another acceptable method of proving accuracy.
(4) [Editor's note: This version of subsection (4) is effective July 1, 2025.]
(a) The department of revenue shall ensure that the GIS database data, including jurisdictional boundaries and tax rates, is at least ninety-five percent accurate based on a statistically valid sample of addresses from the database, or based on another acceptable method of proving accuracy.
method of proving accuracy.
(4) [Editor's note: This version of subsection (4) is effective July 1, 2025.]
(a) The department of revenue shall ensure that the GIS database data, including jurisdictional boundaries and tax rates, is at least ninety-five percent accurate based on a statistically valid sample of addresses from the database, or based on another acceptable method of proving accuracy.
(b) The department of revenue shall update the GIS database with respect to any geographic boundary changes described in section 29-2-205 (4) within thirty days of receipt of the written notice described in section 29-2-205 (1). If the department of revenue does not timely receive the notice described in section 29-2-205 (1), then the department shall update the GIS database as soon as possible after receiving the geographic boundary change information.
(5) The executive director of the department of revenue shall promulgate rules for the administration of this section. Such rules must be promulgated in accordance with article 4 of title 24.
C.R.S. § 39-26-105.3 Remittance of tax - electronic database - vendor held harmless - repeal
39-26-105.3. Remittance of tax - electronic database - vendor held harmless - repeal. (Repealed)
C.R.S. § 39-26-105.4 Remittance of tax - determination of address - dealer held harmless
39-26-105.4. Remittance of tax - determination of address - dealer held harmless. (1) [Editor's note: This version of the introductory portion to subsection (1) is effective until July 1, 2025.] Any licensed motor vehicle dealer that collects and remits tax to the department of revenue as specified in this part 1 for any sale of a motor vehicle shall be held harmless for any tax, charge, or fee liability to any taxing jurisdiction that the dealer proves was not collected solely because an address that does not meet the requirements of section 42-6-139, C.R.S., was provided by the purchaser for purposes of calculating the amounts of tax either due on the sale and purchase of such vehicle pursuant to this part 1 or section 29-2-106, C.R.S., if the dealer:
(1) [Editor's note: This version of the introductory portion to subsection (1) is effective July 1, 2025.] Any licensed motor vehicle dealer that collects and remits tax to the department of revenue as specified in this part 1 for any sale of a motor vehicle shall be held harmless for any tax, charge, or fee liability to any taxing jurisdiction that the dealer proves was not collected solely because an address that does not meet the requirements of section 42-6-139 was provided by the purchaser for purposes of calculating the amounts of tax either due on the sale and purchase of such vehicle pursuant to this part 1 or section 29-2-211, if the dealer:
(a) Informs the purchaser of a motor vehicle of the key requirements of motor vehicle titling and registration as specified in sections 42-3-103 (4)(a), 42-6-134, 42-6-139, and 42-6-140, C.R.S.; and
(b) Obtains an affidavit signed by the purchaser stating that the purchaser's address is true and correct.
C.R.S. § 39-26-105.5 Remittance of sales taxes - electronic funds transfers
39-26-105.5. Remittance of sales taxes - electronic funds transfers. As specified in section 39-22-119.5, a vendor whose liability for state sales tax only for the previous calendar year was more than seventy-five thousand dollars shall use electronic funds transfers to remit all state and local sales taxes required to be remitted to the executive director of the department of revenue.
C.R.S. § 39-26-106 Schedule of sales tax
39-26-106. Schedule of sales tax.
(1) (a) (I) Repealed.
(II) Except as otherwise provided in section 39-26-901, on and after January 1, 2001, there is imposed upon all sales of commodities and services specified in section 39-26-104 a tax at the rate of two and ninety one-hundredths percent of the amount of the sale to be computed in accordance with schedules or systems approved by the executive director of the department of revenue. Said schedules or systems must be designed so that no such tax is charged on any sale of seventeen cents or less.
(b) Notwithstanding the three percent rate provisions of paragraph (a) of this subsection (1), for the period May 1, 1983, through July 31, 1984, the rate of the tax imposed pursuant to this subsection (1) shall be three and one-half percent.
(2) (a) Except as provided in paragraph (b) of this subsection (2), retailers shall add the tax imposed, or the average equivalent thereof, to the sale price or charge, showing such tax as a separate and distinct item, and when added such tax shall constitute a part of such price or charge and shall be a debt from the consumer or user to the retailer until paid and shall be recoverable at law in the same manner as other debts. The retailer shall be entitled, as collecting agent of the state, to apply and credit the amount of the retailer's collections against the rate to be paid by the retailer under the provisions of section 39-26-105, remitting any excess of collections over said rate, less the fee retained by the retailer for the collection and remittance of the tax pursuant to said section, to the executive director of the department of revenue in the retailer's next monthly sales tax return.
(b) Any retailer selling malt, vinous, or spirituous liquors by the drink or any vendor selling individual items of personal property through coin-operated vending machines may include in his sales price the tax levied under this part 1; except that no such retailer shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not included as a part of the sales price to the consumer. The schedule set forth in subsection (1) of this section shall be used by such retailer in determining amounts to be included in such sales price. No such retailer shall gain any benefit from the collection or payment of such tax, except as permitted in section 39-26-105 (1), nor shall the use of the schedule set forth in subsection (1) of this section relieve such retailer from liability for payment of the full amount of the tax levied by this part 1.
(3) Repealed.
C.R.S. § 39-26-107 Rules and regulations
39-26-107. Rules and regulations. To provide uniform methods of adding the tax, or the average equivalent thereof, to the selling price, it is the duty of the executive director of the department of revenue to formulate and promulgate after hearing appropriate rules and regulations to effectuate the purpose of sections 39-26-105 to 39-26-113.
C.R.S. § 39-26-108 Tax cannot be absorbed
39-26-108. Tax cannot be absorbed. It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof imposed by this part 1 will be assumed or absorbed by the retailer or that it will not be added to the selling price of the property sold or if added that it or any part thereof will be refunded. Any person violating any of the provisions of sections 39-26-105 to 39-26-113 commits a class 2 misdemeanor.
C.R.S. § 39-26-109 Reports of vendor
39-26-109. Reports of vendor. (1) If the accounting methods regularly employed by the vendor in the transaction of the vendor's business, or other conditions, are such that reports of sales made on a calendar-month basis will impose unnecessary hardship, the executive director of the department of revenue, upon written request of the vendor, may accept reports at such intervals as will in the executive director's opinion better suit the convenience of the taxpayer and will not jeopardize the collection of the tax as follows:
(a) For returns that must be filed before January 1, 2025, the executive director may by rule permit taxpayers whose monthly tax collected is less than three hundred dollars to make returns and pay taxes at intervals not greater than every three months;
(b) For returns that must be filed on or after January 1, 2025, the executive director may by rule permit taxpayers whose monthly tax collected is less than six hundred dollars to make returns and pay taxes at intervals not greater than every three months; and
(c) For returns that must be filed on or after January 1, 2026, the executive director may by rule increase the amount of monthly tax collected set forth in subsection (1)(b) of this section.
C.R.S. § 39-26-110 Retailer - multiple locations
39-26-110. Retailer - multiple locations. (Repealed)
C.R.S. § 39-26-111 Credit sales
39-26-111. Credit sales. (1) In case of a sale upon credit, or a contract for sale wherein it is provided that the price shall be paid in installments and title does not pass until a future date, or a chattel mortgage or a conditional sale, there shall be paid upon each payment, upon the account of purchase price, that portion of the total tax which the amount paid bears in the total purchase price. Notwithstanding any other provision of this subsection (1), a retailer doing business wholly or partly on a credit basis may, at his election, make a return, and remit sales tax on credit sales, on the basis of the aggregate amount of cash received during the month from taxable credit sales. The retailer may determine the tax to be remitted on the basis of his reasonable estimate of the aggregate amount of tax which he has collected from his credit customers during the month. A retailer's estimate of the taxes collected on credit sales made in any month (referred to in this section as "base month") shall be deemed reasonable if the cumulative sum of the monthly amounts of taxes on such credit sales remitted by the retailer on or before the close of the third, sixth, ninth, twelfth, and fifteenth calendar months following the base month is not less than twenty-five percent, forty-three and seventy-five one-hundredths percent, sixty-two and five-tenths percent, eighty-one and twenty-five one-hundredths percent, and one hundred percent, respectively, of the total taxes due on the aggregate credit sales made by the retailer in the base month. In no event, however, shall the amount of taxes remitted by the retailer in any month be less than the amount which the retailer actually estimates to have been collected in that month.
(2) If a retailer transfers, sells, assigns, or otherwise disposes of an account receivable, he shall be deemed to have received the full balance of the consideration for the original sale and shall be liable for the remittance of the sales tax on the balance of the total sale price not previously reported; except that such transfer, sale, assignment, or other disposition of an account receivable by a retailer to a closely held subsidiary, as defined in section 39-26-102 (10)(k), shall not be deemed to require the retailer to pay the sales tax on the credit sale represented by the account transferred prior to the time the customer makes payment on said account.
C.R.S. § 39-26-112 Excess tax - remittance - repeal
39-26-112. Excess tax - remittance - repeal. (1) If any vendor, during any reporting period, collects as a tax an amount in excess of the tax imposed by section 39-26-106 (1), such vendor shall remit to the executive director of the department of revenue the full net amount of the tax imposed in this part 1 and also such excess. The retention by the retailer or vendor of any excess of tax collections over the said percentage of the total taxable sales of such retailer or vendor, or the intentional failure to remit punctually to the executive director the full amount required to be remitted by the provisions of this part 1 is declared to be unlawful and constitutes a misdemeanor.
(2) (a) The requirements and penalty in this section do not apply to a qualifying retailer retaining state sales tax as allowed in section 39-26-105 (1.3).
(b) This subsection (2) is repealed, effective December 31, 2026.
C.R.S. § 39-26-113 Collection of sales tax - motor vehicles - off-highway vehicles - exemption - process for motor vehicles sold at auction - exception - definition - repeal
39-26-113. Collection of sales tax - motor vehicles - off-highway vehicles - exemption - process for motor vehicles sold at auction - exception - definition - repeal. (1) [Editor's note: This version of subsection (1) is effective until July 1, 2025.] The department of revenue or its authorized agent shall not register a motor or other vehicle for which registration is required or issue a certificate of title for a motor vehicle, off-highway vehicle as defined in section 42-6-102, C.R.S., or manufactured home as defined in section 38-29-106, C.R.S., until any tax due on the sale and purchase of the vehicle under section 29-2-106, C.R.S., or section 39-26-106 or imposed by ordinance of any home rule city has been paid.
(1) [Editor's note: This version of subsection (1) is effective July 1, 2025.] The department of revenue or its authorized agent shall not register a motor or other vehicle for which registration is required or issue a certificate of title for a motor vehicle, off-highway vehicle as defined in section 42-6-102, or manufactured home as defined in section 38-29-106, until any tax due on the sale and purchase of the vehicle under section 29-2-211, section 39-26-106, or imposed by ordinance of any home rule city has been paid.
(2) If an applicant for registration and certificate of title for any motor or other vehicle or for a certificate of title for a mobile home fails to show payment of the sales taxes applicable to the sale and purchase thereof by means of proper receipts therefor, the department of revenue or its authorized agent shall collect all such applicable taxes at the time such application is made.
(3) [Editor's note: This version of subsection (3) is effective until July 1, 2025.] Revenues due the state and collected pursuant to this section shall be distributed as are other revenues under this part 1, and revenues due any county, city, or town so collected shall be distributed in accordance with the provisions of section 29-2-106, C.R.S., or as specified by contract entered into with the department of revenue pursuant to section 24-35-110, C.R.S.
(3) [Editor's note: This version of subsection (3) is effective July 1, 2025.] Revenues due the state and collected pursuant to this section must be distributed as are other revenues under this part 1.
(4) (a) To facilitate collection of sales taxes as provided in this section, the governing body of each city or town which has imposed a sales tax shall certify to the department of revenue and to the county clerk of the county in which such city or town is located a true copy of its current sales tax ordinances, and shall likewise certify any subsequent changes therein.
(b) This subsection (4) is repealed, effective July 1, 2025.
(5) (a) The sale of a new or used automobile to a purchaser who is a nonresident of Colorado and who purchases such automobile for use outside this state is exempt from all sales taxes, the collection of which is provided for by this section.
(b) The executive director of the department of revenue shall attempt to negotiate agreements of reciprocity concerning the collection of sales taxes on motor vehicles with adjacent states.
(c) Repealed.
(5.5) The sale of personal property on which a specific ownership tax has been paid or is payable is exempt from the sales tax imposed by any special district or authority authorized to levy a sales tax pursuant to title 24, 25, 29, 30, 32, 37, or 43, when the sale meets both of the following conditions:
(a) The purchaser is a nonresident of, or has his or her principal place of business outside of, the district or authority; and
y on which a specific ownership tax has been paid or is payable is exempt from the sales tax imposed by any special district or authority authorized to levy a sales tax pursuant to title 24, 25, 29, 30, 32, 37, or 43, when the sale meets both of the following conditions:
(a) The purchaser is a nonresident of, or has his or her principal place of business outside of, the district or authority; and
(b) The personal property is registered or required to be registered outside the limits of the district or authority under the laws of this state.
(6) (a) In a seller-financed sale in which the seller has added the sales tax due on the sale to the financed sales price of the motor or off-highway vehicle and the purchaser has failed to make payments due to the seller, the seller may deduct all portions of the unreceived payments that are attributable to the sales tax due on the sale from the next sales tax return made by the seller under this article. If the amount to be so deducted exceeds the amount of sales tax to be remitted by the seller for the next reporting period, the seller may carry forward the remaining amount of the deduction to future sales tax returns. This subsection (6) does not create a right to a refund or any other payment by the department of revenue to the seller.
(b) For purposes of this subsection (6), "seller-financed sale" means a retail sale of a motor or off-highway vehicle by a seller licensed under article 20 of title 44 in which the seller, or a wholly-owned affiliate or subsidiary of the seller, collects all or part of the total consideration paid for the vehicle in periodic payments and retains a lien on the vehicle until all payments have been received. Except as otherwise provided in this subsection (6)(b), "seller-financed sale" does not include a retail sale of a vehicle in which a person other than the seller provides the consideration for the sale and retains a lien on the vehicle until all payments have been made.
(c) The department of revenue may promulgate rules and regulations for the implementation of this subsection (6).
(7) (a) Notwithstanding any provision of law to the contrary, for any motor vehicle sold through an auction sale, unless paragraph (b) of this subsection (7) applies, all sales tax due for the purchase of the motor vehicle shall not be collected by the auctioneer, but shall be collected by the county clerk or other authorized agent of the county or city and county in which the motor vehicle is to be registered.
(b) The method of sales tax collection specified by subsection (7)(a) of this section does not apply to the sale of a motor vehicle at auction sale if the auctioneer is also an automobile dealer licensed under part 1 of article 20 of title 44.
(8) Subsections (1) and (2) of this section do not apply to the sale or transfer of off-highway vehicles before July 1, 2014. For an off-highway vehicle that was first purchased or transferred before July 1, 2014, and is being issued its first certificate of title for the first time after this date, the department shall not verify that the person paid any tax due on the vehicle.
C.R.S. § 39-26-113.5 Refund of state sales taxes for vehicles used in interstate commerce - fund - repeal
39-26-113.5. Refund of state sales taxes for vehicles used in interstate commerce - fund - repeal. (1) (a) Except as provided in subsection (3) of this section, on and after January 1, 2011, but before July 1, 2025, a taxpayer may claim a refund of a percentage of all state sales and use taxes paid by the taxpayer pursuant to this part 1 and part 2 of this article on the sale, storage, or use of a model year 2010 or newer truck tractor or semitrailer with a gross vehicle weight rating of fifty-four thousand pounds or greater that is purchased on or after July 1, 2011, but before July 1, 2025.
(b) The total refund shall be calculated by the division of motor vehicles in the department of revenue in the same manner as the division calculates the proration of the annual specific ownership tax payable on Class A personal property as specified in section 42-3-107 (4), C.R.S.
(c) The total refund shall be claimed as follows:
(I) For the calendar year in which the truck tractor or semitrailer was purchased, stored, or used, thirty-three percent of the total amount of the refund if the model year of the truck tractor or semitrailer was sold as new during such calendar year;
(II) For the first calendar year after the calendar year in which the truck tractor or semitrailer was purchased, stored, or used, thirty-three percent of the total amount of the refund if the model year of the truck tractor or semitrailer was sold as new during such calendar year; and
(III) For the second calendar year after the calendar year in which the truck tractor or semitrailer was purchased, stored, or used, thirty-three percent of the total amount of the refund if the model year of the truck tractor or semitrailer was sold as new during such calendar year.
(IV) and (V) (Deleted by amendment, L. 2010, (HB 10-1285), ch. 423, p. 2190, § 4, effective July 1, 2010.)
(2) To claim a refund allowed by subsection (1) of this section, a taxpayer shall submit a refund application to the department of revenue on a form provided by the department. The application shall be accompanied by proof of payment of state sales and use taxes paid by the taxpayer. The application shall also include any additional information that the department of revenue may require by rule.
(3) (a) The department of revenue shall deny a claimant the sales tax refund or a portion of such refund granted in this section if the claim results in more than the amount allocated for the credit pursuant to section 42-1-225, C.R.S.
(b) To implement this section, the department of revenue shall track the amount of the refunds granted under this section.
(4) This section is repealed, effective July 1, 2026.
C.R.S. § 39-26-114 Exemptions - disputes - credits or refunds - definitions - creation of fund
39-26-114. Exemptions - disputes - credits or refunds - definitions - creation of fund. (Repealed)
C.R.S. § 39-26-115 Deficiency due to negligence
39-26-115. Deficiency due to negligence. If any part of the deficiency is due to negligence or intentional disregard of authorized rules and regulations with knowledge thereof, but without intent to defraud, there shall be added ten percent of the total amount of the deficiency, and interest in such case shall be collected at the rate imposed under section 39-21-110.5, in addition to the interest provided by section 39-21-109, on the amount of such deficiency from the time the return was due, from the person required to file the return, which interest and addition shall become due and payable ten days after written notice and demand to him by the executive director of the department of revenue. If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added one hundred percent of the total amount of the deficiency, and, in such case, the whole amount of the tax unpaid, including the additions, shall become due and payable ten days after written notice and demand by the executive director, and an additional three percent per month on said amount shall be added from the date the return was due until paid.
C.R.S. § 39-26-116 Record of sales
39-26-116. Record of sales. It is the duty of every person engaging or continuing in business in this state, for the transaction of which a license is required under this part 1 to keep and preserve suitable records of all sales made by him and such other books or accounts as may be necessary to determine the amount of tax for the collection of which he is liable under this part 1. It is the duty of every such person to keep and preserve for a period of three years all invoices of goods and merchandise purchased for resale and all such books, invoices, and other records shall be open for examination at any time by the executive director of the department of revenue or his duly authorized agent.
C.R.S. § 39-26-117 Tax lien - exemption from lien
39-26-117. Tax lien - exemption from lien. (1) (a) Except as provided in paragraphs (b) and (f) of this subsection (1), the tax imposed by this part 1 shall be a first and prior lien upon the goods and business fixtures of or used by any retailer or qualified purchaser under lease, title retaining contract, or other contract arrangement, excepting stock of goods sold or for sale in the ordinary course of business, and shall take precedence on all such property over other liens or claims of whatsoever kind or nature.
(b) Any retailer or person in possession shall provide a copy of any lease pertaining to the assets and property described in paragraph (a) of this subsection (1) to the department of revenue within ten days after seizure by the department of such assets and property. The department shall verify that such lease is bona fide and notify the owner that such lease has been received by the department. The department shall use its best efforts to notify the owner of the real or personal property which might be subject to the lien created in paragraph (a) of this subsection (1). The real or personal property of an owner who has made a bona fide lease to a retailer shall be exempt from the lien created in paragraph (a) of this subsection (1) if such property can reasonably be identified from the lease description or if the lessee is given an option to purchase in such lease and has not exercised such option to become the owner of the property leased. This exemption shall be effective from the date of the execution of the lease. Such exemption shall also apply if the lease is recorded with the county clerk and recorder of the county where the property is located or based or a memorandum of the lease is filed with the department of revenue on such forms as may be prescribed by said department after the execution of the lease at a cost for such filing of two dollars and fifty cents per document. Motor vehicles which are properly registered in this state, showing the lessor as owner thereof, shall be exempt from the lien created in paragraph (a) of this subsection (1); except that said lien shall apply to the extent that the lessee has an earned reserve, allowance for depreciation not to exceed fair market value, or similar interest which is or may be credited to the lessee. Where the lessor and lessee are blood relatives or relatives by law or have twenty-five percent or more common ownership, a lease between such lessee and such lessor shall not be considered as bona fide for purposes of this section.
(b.5) Any coin-operated vending machine or video or other game machine shall be exempt from the lien created in paragraph (a) of this subsection (1) if:
(I) The machine is placed on the retailer's premises under the terms of a lease or other agreement under which the retailer is given no right to become the owner of the machine;
(II) The machine is plainly marked in a location accessible to agents of the department of revenue with information sufficient to permit identification of the owner of said property; and
(III) The owner of the machine has filed with the department of revenue a schedule listing the machine by serial number and including thereon the owner's full name and the address of his business and such other information as the executive director of the department of revenue may require. To protect the anonymity of owners of property, the executive director of the department of revenue may permit property covered by this paragraph (b.5) to be marked using numbers or other coded identification.
ne by serial number and including thereon the owner's full name and the address of his business and such other information as the executive director of the department of revenue may require. To protect the anonymity of owners of property, the executive director of the department of revenue may permit property covered by this paragraph (b.5) to be marked using numbers or other coded identification.
(c) Any retailer who is in possession of property under the terms of a lease, which property is exempt from lien as provided in this section, may be required by the executive director of the department of revenue to remit taxes collected at more frequent intervals than monthly, but no more frequently than semimonthly, or may be required to furnish security for the proper payment of taxes whenever the collection of taxes appears to be in jeopardy.
(d) Any retailer who sells out his business or stock of goods, or quits business, shall be required to make out the return as provided in this part 1, within ten days after the date he sold his business or stock of goods or quit business, and his successor in business shall be required to withhold sufficient purchase money to cover the amount of said taxes due and unpaid until such time as the former owner produces a receipt from the executive director of the department of revenue showing that the taxes have been paid or a certificate that no taxes are due.
(e) If the purchaser of a business or stock of goods fails to withhold the purchase money as provided in paragraph (d) of this subsection (1), and the taxes are due and unpaid after the ten-day period allowed, he, as well as the vendor, shall be personally liable for the payment of the taxes unpaid by the former owner. Likewise, anyone who takes any stock of goods or business fixtures of or used by any retailer under lease, title retaining contract, or other contract arrangement, by purchase, foreclosure sale, or otherwise, takes same subject to the lien for any delinquent sales taxes owed by such retailer and shall be liable for the payment of all delinquent sales taxes of such prior owner, not, however, exceeding the value of property so taken or acquired.
(f) Any qualified purchaser that provides a direct payment permit number issued pursuant to section 39-26-103.5 to a vendor or retailer shall be subject to the lien created in paragraph (a) of this subsection (1) to the extent of any tax owed as a result of purchases made by the qualified purchaser plus any penalty and interest assessed pursuant to this article or article 21 of this title.
(2) Whenever the business or property of any taxpayer subject to this part 1 shall be placed in receivership, bankruptcy, or assignment for the benefit of creditors, or seized under distraint for property taxes, all taxes, penalties, and interest imposed by this part 1, and for which said retailer is in any way liable under the terms of this part 1, shall be a prior and preferred claim against all the property of said taxpayer, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights shall have attached prior to the filing of the notice as provided in section 39-26-118 on the property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer. No sheriff, receiver, assignee, or other officer shall sell the property of any person subject to this part 1 under process or order of any court without first ascertaining from the executive director the amount of any taxes due and payable under this part 1, and, if there are any such taxes due, owing, or unpaid, it is the duty of such officer to first pay the amount of said taxes out of the proceeds of said sale before making payment of any moneys to any judgment creditor or other claims of whatsoever kind or nature, except the costs of the proceedings and other preexisting claims or liens as provided in this section
ue and payable under this part 1, and, if there are any such taxes due, owing, or unpaid, it is the duty of such officer to first pay the amount of said taxes out of the proceeds of said sale before making payment of any moneys to any judgment creditor or other claims of whatsoever kind or nature, except the costs of the proceedings and other preexisting claims or liens as provided in this section. For the purposes of this part 1, "taxpayer" includes "retailer".
C.R.S. § 39-26-118 Recovery of taxes, penalty, and interest - repeal
39-26-118. Recovery of taxes, penalty, and interest - repeal. (1) (a) All sums of money paid by the purchaser to the retailer as taxes imposed by this article 26 shall be and remain public money, the property of the state of Colorado, in the hands of such retailer, and the retailer shall hold the same in trust for the sole use and benefit of the state of Colorado until paid to the executive director of the department of revenue, and, for failure to so pay to the executive director, the retailer shall be punished as provided by law.
(b) (I) This subsection (1) does not apply to a qualifying retailer retaining state sales tax as allowed in section 39-26-105 (1.3).
(II) This subsection (1)(b) is repealed, effective December 31, 2026.
(2) (a) (I) If a person neglects or refuses to make a timely return in payment of the tax or to pay or correctly account for any tax as required by this article 26, the executive director of the department of revenue shall make an estimate, based upon the information that may be available, of the amount of taxes due or not accounted for or incorrectly accounted for on a return for the period for which the taxpayer is delinquent. The executive director shall add to the estimated amount of taxes due or not accounted for interest if applicable under section 39-21-110.5, and a penalty equal to the greater of:
(A) The sum of fifteen dollars; or
(B) Ten percent of such unpaid, unaccounted, or incorrectly accounted amount, plus one-half percent per month from the date when due, not exceeding eighteen percent in the aggregate.
(II) The executive director shall provide the delinquent taxpayer written notice of the estimated taxes, penalty, and interest by first-class mail as set forth in section 39-21-105.5.
(b) Such estimate shall thereupon become a notice of deficiency as provided in section 39-21-103. A hearing may be held and the executive director shall make a final determination pursuant to that section. The taxpayer may appeal the said final determination in the manner provided in section 39-21-105.
(3) (a) If any taxes, penalty, or interest imposed by this article and shown due by returns filed by the taxpayer or as shown by assessments duly made as provided in this section are not paid within five days after the same are due, the executive director shall issue a notice, setting forth the name of the taxpayer, the amount of the tax, penalties, and interest, the date of the accrual thereof, and that the state of Colorado claims a first and prior lien therefor on the real and tangible personal property of the taxpayer except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights have attached prior to the filing of the notice as provided in this section on property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer.
laims a first and prior lien therefor on the real and tangible personal property of the taxpayer except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights have attached prior to the filing of the notice as provided in this section on property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer.
(b) Said notice shall be on forms prepared by the executive director, and shall be verified by him or his duly qualified deputy, or any duly qualified agent of the executive director, whose duties are the collection of such tax, and may be filed in the office of the county clerk and recorder of any county in the state in which the taxpayer owns real or tangible personal property, and the filing of such notice shall create such lien on such property in that county and constitute notice thereof. After said notice has been filed, or concurrently therewith, or at any time when taxes due are unpaid, whether such notice is filed or not, the executive director may issue a warrant directed to any duly authorized revenue collector, or to the sheriff of any county of the state, commanding him to levy upon, seize, and sell sufficient of the real and personal property of the tax debtor found within his county for the payment of the amount due, together with interest, penalties, and costs, as may be provided by law, subject to valid preexisting claims or liens.
(4) Such revenue collector or the sheriff shall forthwith levy upon sufficient of the property of the taxpayer, or any property used by such taxpayer in conducting his retail business, except property made exempt from lien pursuant to the provisions of section 39-26-117 (1)(b), and said property so levied upon shall be sold in all respects with like effect and in the same manner as is prescribed by law in respect to executions against property upon judgment of a court of record, and the remedies of garnishments shall apply. The sheriff shall be entitled to such fees in executing such warrant as are allowed by law for similar services.
(5) Any lien for taxes as shown on the records of the county clerk and recorders as provided in this section, upon payment of all taxes, penalties, and interest covered thereby, shall be released by the executive director in the same manner as mortgages and judgments are released.
(6) It is the duty of any county clerk and recorder to whom such notices are sent to file and record the same without cost or charge.
(7) (a) The executive director may also treat any such taxes, penalties, or interest due and unpaid as a debt due the state from the vendor. In case of failure to pay the tax or any portion thereof, or any penalty or interest thereon when due, the executive director may receive at law the amount of such taxes, penalties, and interest in such county or district court of the county wherein the taxpayer resides or has his principal place of business having jurisdiction of the amounts sought to be collected. The return of the taxpayer or the assessment made by the executive director, as provided in this article, shall be prima facie proof of the amount due.
ector may receive at law the amount of such taxes, penalties, and interest in such county or district court of the county wherein the taxpayer resides or has his principal place of business having jurisdiction of the amounts sought to be collected. The return of the taxpayer or the assessment made by the executive director, as provided in this article, shall be prima facie proof of the amount due.
(b) Such actions may be actions in attachment, and writs of attachment may be issued to the sheriff, and in any such proceeding no bond shall be required of the executive director, nor shall any sheriff require of the executive director an indemnifying bond for executing the writ of attachment or writ of execution upon any judgment entered in such proceedings; and the executive director may prosecute appeals in such cases without the necessity of providing bond therefor. It is the duty of the attorney general or any district attorney, when requested by the executive director, to commence action for the recovery of taxes due under this article, and this remedy shall be in addition to all other existing remedies or remedies provided in this article and article 21 of this title.
(8) In any action affecting the title to real estate or the ownership or rights to possession of personal property, the state of Colorado may be made a party defendant for the purpose of obtaining an adjudication or determination of its lien upon the property involved therein. In any such action, service of summons upon the executive director or any person in charge of the office of the executive director shall be sufficient service and binding upon the state of Colorado.
(9) The executive director is authorized to waive, for good cause shown, any penalty or interest assessed as provided in this article and article 21 of this title, and interest imposed in excess of the rate imposed under section 39-21-110.5 shall be deemed a penalty.
C.R.S. § 39-26-119 License and tax additional
39-26-119. License and tax additional. The license and tax imposed by this part 1 shall be in addition to all other licenses and taxes imposed by law, except as otherwise provided in this part 1.
C.R.S. § 39-26-120 False or fraudulent return, statement - penalty
39-26-120. False or fraudulent return, statement - penalty. (1) It is unlawful for any retailer or vendor to refuse to make any return required to be made in this part 1 or to make any false or fraudulent return or false statement on any return, or fail and refuse to make payment to the executive director of the department of revenue of any taxes collected or due the state, or in any manner evade the collection and payment of the tax, or any part thereof, or for any person or purchaser to fail or refuse to pay such tax, or evade the payment thereof, or to aid or abet another in any attempt to evade the payment of the tax.
(2) A person willfully violating the provisions of this section is guilty of a class 5 felony and shall be punished as provided in section 18-1.3-401. A corporation willfully making a false return or a return willfully containing a false statement is guilty of a class 5 felony and shall be punished as provided in section 18-1.3-401. A court of competent jurisdiction of the county in which the offender resides, or, if a corporation, then the county of its principal place of business, has jurisdiction to enforce this section.
(3) In addition to the foregoing penalties, any person who knowingly and willfully swears to or verifies any false statement commits a class 2 misdemeanor.
C.R.S. § 39-26-121 Penalty
39-26-121. Penalty. Unless otherwise provided in this part 1, any person guilty of a felony, as defined and declared in this part 1, upon conviction thereof, shall be punished as provided by section 39-21-118.
C.R.S. § 39-26-122 Administration
39-26-122. Administration. The administration of this part 1 is vested in and shall be exercised by the executive director of the department of revenue who shall prescribe forms and reasonable rules and regulations in conformity with this part 1 for the making of returns, for the ascertainment, assessment, and collection of the taxes imposed under this part 1, and for the proper administration and enforcement of this part 1.
C.R.S. § 39-26-122.5 Collection of sales tax - enhanced efficiencies - intergovernmental agreements with local governments - legislative declaration - repeal
39-26-122.5. Collection of sales tax - enhanced efficiencies - intergovernmental agreements with local governments - legislative declaration - repeal. (1) The general assembly hereby finds and declares that:
(a) It is in the best interest of the state, local governments, and taxpayers to have sales tax collected in the most efficient and effective manner feasible;
(b) Sales taxes can be administered and collected most efficiently when the governmental entities that collect the taxes cooperate and share responsibilities to collect and distribute revenues from the taxes;
(c) The administrative burden on taxpayers is lessened when governmental entities cooperate and agree on the processes used to administer and collect sales taxes;
(d) Broad authority and precedent exist for governmental entities to operate more efficiently and effectively by contracting with each other to cooperate in carrying out their respective responsibilities;
(e) The purpose of this section is to encourage the state to work cooperatively with counties and other local governments in the administration and collection of sales taxes in the state to enhance efficiencies and procedures for the benefit of both the department of revenue and local governments.
(2) The executive director of the department of revenue may enter into an intergovernmental agreement with any county for the purpose of enhancing the systemic efficiencies and procedures used in the collection of state and local sales taxes. Such agreement shall be entered into on behalf of and for the benefit of both the county and the department. In addition, a municipality may be included as a party to the agreement to further the same efficiencies and procedures to be enhanced by the agreement between the executive director and a county. The agreement may allow the parties to share in providing any function or service lawfully authorized to each of the parties, including the sharing of costs, information, or duties related to the collection of sales taxes within the boundaries of the county.
(3) The executive director of the department of revenue shall annually provide information to the finance committees of the house of representatives and the senate, or any successor committees, on any agreements entered into in accordance with the provisions of this section and any enhanced effectiveness or procedures that have been achieved as result of the agreements. Such information shall be incorporated into an existing report provided on annual basis by the executive director to the committees.
(4) This section is repealed, effective July 1, 2025.
C.R.S. § 39-26-122.7 Filing and remittance of remote sales - standard sales tax reporting form for remote sales - delayed distributions - central audit bureau - creation
39-26-122.7. Filing and remittance of remote sales - standard sales tax reporting form for remote sales - delayed distributions - central audit bureau - creation. (Repealed)
C.R.S. § 39-26-123 Receipts - disposition - transfers of general fund surplus - sales tax holding fund - creation - definitions
39-26-123. Receipts - disposition - transfers of general fund surplus - sales tax holding fund - creation - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Repealed.
(a.5) (Deleted by amendment, L. 2011, (HB 11-1043), ch. 266, p. 1213, § 24, effective July 1, 2011.)
(a.7) "Net revenue" means the gross amount of sales and use tax receipts collected under this article 26, less a fee retained by vendors for the collection and remittance of the tax pursuant to section 39-26-105 (1) and less refunds and adjustments made by the department of revenue in conjunction with its collection and enforcement duties under this article 26.
(b) (I) "Sales and use taxes attributable to sales or use of vehicles and related items" means the net revenue raised from the state sales and use taxes imposed pursuant to this article on the sales or use of new or used motor vehicles, including motor homes, motor vehicle batteries, tires, parts, or accessories, utility trailers, camper coaches, or camper trailers.
(II) With respect to sales tax, "related items" includes only items sold by persons whose primary business activity is the sale or service of motor vehicles or related items.
(2) The sales and use tax holding fund is hereby created in the state treasury and shall be administered by the state treasurer. The fund shall consist of moneys transferred to the fund pursuant to subsection (3.5) of this section. Interest and income earned on the deposit and investment of moneys in the fund shall be credited to the fund and shall not revert to the general fund of the state or to any other fund. Moneys in the fund shall be transferred from the fund only to the highway users tax fund created in section 43-4-201, C.R.S., and the general fund and only in the manner specified in subsection (4) of this section.
(3) For any state fiscal year commencing on or after July 1, 2013, the state treasurer shall credit eighty-five percent of all net revenue collected under this article 26 to the old age pension fund created in section 1 of article XXIV of the state constitution. The state treasurer shall credit to the general fund the remaining fifteen percent of the net revenue, less:
(a) (I) Ten million dollars, which the state treasurer shall credit to the older Coloradans cash fund created in section 26-11-205.5 (5) for each state fiscal year other than the state fiscal year 2020-21;
(II) Eight million dollars, which the state treasurer shall credit to the older Coloradans cash fund created in section 26-11-205.5 (5) for the state fiscal year 2020-21; and
(b) (I) Except as set forth in subsection (3)(b)(II) of this section, an amount equal to the fiscal year increase in sales and use tax revenue attributable to the vendor fee changes made by House Bill 19-1245, enacted in 2019, which amount the state treasurer shall credit to the housing development grant fund created in section 24-32-721 (1).
(II) The amount credited to the housing development grant fund created in section 24-32-721 (1) under subsection (3)(b)(I) of this section is reduced by the following amounts:
(A) Fifteen million three hundred thirty-five thousand seven hundred eighty-one dollars for the state fiscal year 2019-20;
(B) Forty million three hundred twenty-three thousand one hundred fifty-eight dollars for the state fiscal year 2020-21;
(C) Nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal years 2021-22, 2022-23, and 2023-24;
(D) Thirty-five million nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal year 2024-25 through state fiscal year 2031-32; and
(E) Nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal year 2032-33 and each state fiscal year thereafter.
(3.5) Repealed.
-five dollars for the state fiscal years 2021-22, 2022-23, and 2023-24;
(D) Thirty-five million nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal year 2024-25 through state fiscal year 2031-32; and
(E) Nine hundred eighty-five thousand three hundred thirty-five dollars for the state fiscal year 2032-33 and each state fiscal year thereafter.
(3.5) Repealed.
(4) (a) Except as otherwise provided in sub-subparagraph (B) of subparagraph (VI) of this paragraph (a), all moneys in the sales and use tax holding fund shall be transferred to the highway users tax fund, as follows:
(I) to (III) (Deleted by amendment, L. 2009, (SB 09-228), ch. 410, p. 2266, § 21, effective July 1, 2009.)
(IV) If the revenue estimate prepared by the staff of the legislative council in December of state fiscal year 2017-18 or in December of any succeeding state fiscal year indicates that the amount of total general fund revenues for the state fiscal year will be sufficient to maintain the four percent or higher reserve required by section 24-75-201.1 (1), C.R.S., on February 1 of the fiscal year the state treasurer shall transfer from the sales and use tax holding fund to the highway users tax fund an amount equal to the lesser of:
(A) Fifty percent of the amount estimated in the December revenue estimate to be accrued and transferred to the highway users tax fund pursuant to this section for the entire fiscal year; or
(B) The balance of the sales and use tax holding fund.
(V) If the revenue estimate prepared by the staff of the legislative council in March of state fiscal year 2017-18 or in March of any succeeding state fiscal year indicates that the amount of total general fund revenues for the state fiscal year will be sufficient to maintain the four percent or higher reserve required by section 24-75-201.1 (1), C.R.S., on April 15 of the fiscal year the state treasurer shall transfer from the sales and use tax holding fund to the highway users tax fund the lesser of:
(A) The amount needed to ensure that the cumulative amount transferred from the sales and use tax holding fund to the highway users tax fund through April 15 equals seventy-five percent of the amount estimated in the March revenue estimate to be accrued and transferred to the highway users tax fund pursuant to this section for the entire fiscal year; or
(B) The balance of the sales and use tax holding fund.
(VI) (A) Effective June 30 of state fiscal year 2006-07, and effective June 30 of each state fiscal year thereafter, the state controller shall accrue all moneys in the sales and use tax holding fund as of that date to the highway users tax fund.
(B) Notwithstanding the provisions of sub-subparagraph (A) of this subparagraph (VI), the state controller shall reduce the amount accrued to the highway users tax fund pursuant to said sub-subparagraph and accrue moneys in the sales and use tax holding fund to the general fund to the extent necessary to ensure that the amount of general fund revenues for the state fiscal year is sufficient to maintain the four percent reserve required by section 24-75-201.1 (1), C.R.S.
(C) The state treasurer shall transfer, out of the amounts accrued by the state controller pursuant to sub-subparagraphs (A) and (B) of this subparagraph (VI), on September 20, 2007, and on September 20 of each succeeding fiscal year, the amounts needed to ensure that the cumulative amounts required to be accrued and transferred from the sales and use tax holding fund to the highway users tax fund and, if applicable to the general fund, equal ninety percent of the aggregate amounts required to be accrued and transferred to the funds pursuant to this section for the entire preceding fiscal year. The state treasurer shall transfer the remainder of the amounts accrued pursuant to said sub-subparagraphs on the date on which the state controller distributes the comprehensive annual financial report of the state.
e to the general fund, equal ninety percent of the aggregate amounts required to be accrued and transferred to the funds pursuant to this section for the entire preceding fiscal year. The state treasurer shall transfer the remainder of the amounts accrued pursuant to said sub-subparagraphs on the date on which the state controller distributes the comprehensive annual financial report of the state.
(b) If a change in tax policy resulting in a significant reduction of general fund revenues is implemented, the general assembly shall:
(I) Examine the exception set forth in sub-subparagraph (B) of subparagraph (VI) of paragraph (a) of this subsection (4) to the general requirement set forth in paragraph (a) of this subsection (4) that all moneys in the sales and use tax holding fund be accrued and transferred to the highway users tax fund and determine whether the exception should be modified in light of the change.
(II) (Deleted by amendment, L. 2009, (SB 09-228), ch. 410, p. 2266, § 21, effective July 1, 2009.)
(4.5) Repealed.
(5) (Deleted by amendment, L. 2009, (SB 09-228), ch. 410, p. 2266, § 21, effective July 1, 2009.)
(6) Repealed.
C.R.S. § 39-26-123.1 Credit of sales and use tax receipts to Colorado water conservation board construction fund - terminates July 1, 1982 - repeal
39-26-123.1. Credit of sales and use tax receipts to Colorado water conservation board construction fund - terminates July 1, 1982 - repeal. (Repealed)
C.R.S. § 39-26-124 Applicability to banks
39-26-124. Applicability to banks. The provisions of this part 1 shall apply to national banking associations and to banks organized and chartered under the laws of this state.
C.R.S. § 39-26-125 Limitations
39-26-125. Limitations. [Editor's note: This version of this section is effective until July 1, 2025.] The taxes for any period, together with the interest thereon and penalties with respect thereto, imposed by this part 1 shall not be assessed, nor shall any notice of lien be filed, or distraint warrant issued, or suit for collection be instituted, nor any other action to collect the same be commenced, more than three years after the date on which the tax was or is payable, except as set forth in section 29-2-106.1 (5)(b); nor shall any lien continue after such period, except for taxes assessed before the expiration of such period, notice of lien with respect to which has been filed prior to the expiration of such period, in which cases such lien shall continue only for one year after the filing of notice thereof. In the case of a false or fraudulent return with intent to evade tax, the tax, together with interest and penalties thereon, may be assessed, or proceedings for the collection of such taxes, may be begun, at any time. Before the expiration of such period of limitation, the taxpayer and the executive director of the department of revenue may agree in writing to an extension thereof, and the period so agreed on may be extended by subsequent agreements in writing.
C.R.S. § 39-26-126 Legislative finding as to revenues for old age pension fund
39-26-126. Legislative finding as to revenues for old age pension fund. The general assembly finds that sections 39-26-105 (1), 39-26-106 (2)(a), 39-26-109, 39-26-112, 39-26-717 (1), and 39-26-714 (1) repeal no law that provides revenue for the old age pension fund and amend no law so as to reduce the revenue provided for the old age pension fund, except as is allowed by article XXIV of the state constitution.
C.R.S. § 39-26-127 Legislation modifying the state sales tax base - no impact on local government sales tax bases - no expansion of local authority to levy sales tax
39-26-127. Legislation modifying the state sales tax base - no impact on local government sales tax bases - no expansion of local authority to levy sales tax. (1) Notwithstanding the provisions of section 29-2-105 (1)(d), C.R.S., any provision of title 32, C.R.S., or any other provision of law, and except as set forth in subsection (3) of this section, the levying of sales tax on, exemption from sales tax for, or local option to levy sales tax on or provide an exemption from sales tax for any tangible personal property or services under the sales tax ordinance or resolution of any county, municipality, special district, authority, or other local government or political subdivision of the state shall not be affected in any way by the elimination, suspension, or modification of any sales tax exemption or any other legislative modification of the state sales tax base resulting from the enactment of any of the following bills:
(a) House Bill 10-1189, enacted in 2010;
(b) House Bill 10-1190, enacted in 2010;
(c) House Bill 10-1191, enacted in 2010;
(d) House Bill 10-1194, enacted in 2010;
(e) House Bill 10-1195, enacted in 2010.
(2) Except as set forth in subsection (3) of this section, this section does not create or expand, and shall not be construed to create or expand, any authority of any county, municipality, special district, authority, or other local government or political subdivision of the state to levy sales tax.
(3) Beginning January 1, 2014, subsection (1) of this section does not apply to the regional transportation district established by article 9 of title 32, C.R.S., and the scientific and cultural facilities district established by article 13 of title 32, C.R.S., which levy sales and use tax upon every transaction or other incident with respect to which a sales and use tax is levied by the state.
C.R.S. § 39-26-128 Uniform sales and use tax base - definition
39-26-128. Uniform sales and use tax base - definition. (1) (a) The department of revenue shall make recommendations to the general assembly regarding the establishment of a revenue neutral uniform sales and use tax base throughout the state. In developing the recommendations, the department shall consult with representatives of the Colorado municipal league, or its successor entity, and Colorado counties, incorporated, or its successor entity. Such representatives must have experience in writing sales and use tax policy and must represent constituents of local taxing jurisdictions. The recommendations shall include:
(I) A uniform definition of tangible personal property;
(II) A uniform list of items that are exempt from taxation by the state and local taxing jurisdictions;
(III) Uniform definitions of the tax-exempt items;
(IV) Rate changes, including consideration of rates of zero percent that would be necessary to achieve revenue neutrality for the state and any local taxing jurisdiction; and
(V) Any other recommendations deemed appropriate by the department of revenue regarding the establishment of a revenue neutral uniform sales and use tax base.
(b) (I) For purposes of this subsection (1), a uniform sales and use tax base is revenue neutral if, when substituted for a jurisdiction's prior sales and use tax base, the result is no more than a de minimis change in tax revenue for the substituting jurisdiction.
(II) In estimating revenue neutrality, the department of revenue shall use the best information it has available.
(c) For purposes of this subsection (1), a "local taxing jurisdiction" means a city, town, municipality, county, special district, or authority authorized to levy a sales tax pursuant to title 24, 25, 29, 30, 31, 32, 37, or 42, C.R.S., and cities, cities and counties, or towns governed by a home rule charter that impose a sales or use tax in the state.
(2) The department of revenue shall include the recommendations made pursuant to subsection (1) of this section in a report to the general assembly pursuant to section 24-1-136 (9), C.R.S. The report must be submitted to the general assembly no later than December 31, 2013, and made available to the public on a website maintained by the department of revenue.
(3) Members of the general assembly are encouraged to consider the recommendations of the department of revenue pursuant to this section and, if viewed favorably, to introduce legislation and, if appropriate, a house or senate concurrent resolution, during the second regular session of the sixty-ninth general assembly to establish a revenue neutral uniform statewide sales and use tax base.
C.R.S. § 39-26-129 Refund for property used in rural broadband service - legislative declaration - definitions - repeal
39-26-129. Refund for property used in rural broadband service - legislative declaration - definitions - repeal. (1) The general assembly declares that the intended purpose of the tax refund created in this section is to encourage broadband providers to deploy broadband infrastructure in rural areas of the state and to create incentives for investment in broadband infrastructure in addition to the incentives already created by other state or federal law.
(2) As used in this section, unless the context otherwise requires:
(a) "Broadband provider" means a person that provides broadband service.
(b) "Broadband service" means any communications service having the capacity to transmit data to enable a subscriber to the service to originate and receive high-quality voice, data, graphics, and video at speeds of at least four megabits per second for download and one megabit per second for upload or the federal communications commission's definition of broadband service, whichever is faster.
(c) "Target area" means the unincorporated part of a county or a municipality with a population of less than thirty thousand people, according to the most recently available population statistics of the United States bureau of the census.
(3) Except as provided in subsection (5) of this section, for the calendar year commencing January 1, 2014, and for each calendar year thereafter prior to January 1, 2027, a broadband provider is allowed to claim a refund of all the state sales and use tax the provider pays pursuant to parts 1 and 2 of this article 26 for tangible personal property that is installed in a target area for the provision of broadband service.
(4) To claim the refund allowed by subsection (3) of this section, a taxpayer must submit a refund application to the department of revenue, on a form provided by the department, no earlier than January 1 and no later than April 1 of the calendar year following the calendar year in which the tax is paid. Along with the application, the taxpayer must provide proof of the state sales and use taxes paid by the broadband provider in the immediately preceding calendar year and proof that the tangible personal property was deployed in a target area for the provision of broadband service. A taxpayer must also provide any additional information with the application that the department of revenue requires by rule, which may include, without limitation, a detailed list of all expenditures that support a claim for a refund, the name and addresses of an individual who maintains records of such expenditures, and a statement that the taxpayer agrees to furnish records of all such expenditures to the department of revenue upon request. The department shall not refund any moneys to a taxpayer unless the taxpayer has complied with this subsection (4).
(5) The total amount of the refunds made under this section may not exceed one million dollars for a calendar year. The department of revenue shall not pay a refund for a calendar year until after the application deadline set forth in subsection (4) of this section has passed. If the total amount of approved refunds exceeds one million dollars, the department shall prorate the refunds made to all taxpayers.
(6) This section is repealed, effective December 31, 2030.
C.R.S. § 39-26-201 Definitions
39-26-201. Definitions. In addition to the definitions in section 39-26-102, as used in this part 2, unless the context otherwise requires:
(1) "Acquisition charges or costs" includes "purchase price", as defined in section 39-26-102 (7).
(2) "Person" means an individual, corporation, limited liability company, partnership, firm, joint venture, association, estate, trust, receiver, or group acting as a unit and includes the plural as well as the singular number.
(3) "Storage" or "storing" means any keeping or retention of, or exercise of dominion or control over, tangible personal property in this state.
C.R.S. § 39-26-202 Authorization of tax
39-26-202. Authorization of tax. (1) (a) Except as otherwise provided in subsection (1)(b) of this section, there is imposed and shall be collected from every person in this state a tax or excise at the rate of three percent of storage or acquisition charges or costs for the privilege of storing, using, or consuming in this state any articles of tangible personal property purchased at retail.
(b) Except as otherwise provided in section 39-26-901, on and after January 1, 2001, there is imposed and must be collected from every person in this state a tax or excise at the rate of two and ninety one-hundredths percent of storage or acquisition charges or costs for the privilege of storing, using, or consuming in this state any articles of tangible personal property purchased at retail.
(c) Such tax shall be payable to and shall be collected by the executive director of the department of revenue and shall be computed in accordance with schedules or systems approved by said executive director. The transfer of wireless telecommunication equipment as an inducement to enter into or continue a contract for telecommunication services that are taxable pursuant to part 1 of this article shall not be construed to be storage, use, or consumption of such equipment by the transferor.
(2) Notwithstanding the three percent rate provisions of subsection (1) of this section, for the period May 1, 1983, through July 31, 1984, the rate of the tax imposed pursuant to this section shall be three and one-half percent.
(3) Repealed.
C.R.S. § 39-26-203 Exemptions - definitions
39-26-203. Exemptions - definitions. (Repealed)
C.R.S. § 39-26-204 Periodic return - collection
39-26-204. Periodic return - collection. (1) (a) Every person subject to the provisions of this part 2 who uses, stores, or consumes tangible personal property in the conduct of a business in this state, which property is purchased either inside or outside this state, and who has not paid the sales or use tax imposed by this article to a retailer shall make a return and remit the tax imposed by this part 2 to the executive director of the department of revenue for the preceding period covered by the remittance on forms prescribed by him, showing in detail the tangible personal property stored, used, or consumed by said person in the conduct of his business within the state in the preceding period covered by the remittance and on which property the said sales or use tax has not been paid. Every person subject to the provisions of this part 2 shall maintain monthly records of the amount of tax due. At such time as the cumulative tax due at the end of any month is in excess of three hundred dollars, such person shall make a return and remit the tax due before the twentieth day of the following month. If the total tax due in a calendar year is less than three hundred dollars, such person shall make a single return and remittance for such calendar year before January 20 of the following calendar year.
(b) Every person who is subject to the provisions of this part 2 who uses, stores, or consumes tangible personal property not in the conduct of a business, which is purchased either inside or outside this state, who has not paid the sales or use tax imposed by this article to a retailer, shall make a return and remit the tax annually, at the time the Colorado income tax of such person is due and payable as provided in article 22 of this title, on forms prescribed by the executive director, showing in detail the tangible personal property stored, used, or consumed by said persons within this state for the preceding taxable year.
(c) All such returns shall be subscribed by the taxpayer or his agent and shall contain a written declaration that it is made under the penalties of perjury in the second degree.
(2) (a) Every retailer, except those retailers described in subsection (2)(b) of this section, doing business in this state and making sales of tangible personal property for storage, use, or consumption in the state, and not exempted as provided in part 7 of this article 26, at the time of making such sales or taking the orders therefor, or, if the storage, use, or consumption of such tangible personal property is not then taxable under this part 2, then at the time such storage, use, or consumption becomes taxable under this part 2, and sourced as provided in section 39-26-104 (3), shall collect the tax imposed by section 39-26-202, from the purchaser and give to the purchaser a receipt therefor, which receipt shall identify the property, the date sold or the date ordered, and the tax collected and paid. The tax required to be collected by such retailer from such purchaser shall be displayed separately from the advertised price listed on the forms or advertising matter on all sales checks, orders, sales slips, or other proof of sales.
purchaser and give to the purchaser a receipt therefor, which receipt shall identify the property, the date sold or the date ordered, and the tax collected and paid. The tax required to be collected by such retailer from such purchaser shall be displayed separately from the advertised price listed on the forms or advertising matter on all sales checks, orders, sales slips, or other proof of sales.
(b) Repealed.
(3) It is unlawful for such retailer or agent to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by such retailer or agent, or that it will not be added to the selling price of the property sold, or, if added, that it or any part thereof will be refunded. The tax required to be collected by such retailer or agent shall be remitted to the state in like manner as otherwise provided in this article for the remittance of sales taxes collected by retailers, and all such retailers or agents collecting the tax imposed by section 39-26-202 shall make returns on forms provided by the executive director at such times and in such manner as is provided for the making of returns in the payment of the sales taxes. The procedure for assessing and collecting said taxes from such retailers or agents, or from the user when not paid to a retailer or agent, shall be the same as provided in this article and article 21 of this title for the collection of sales taxes, including collection by distraint warrant, and said taxes due and owing from any retailer or agent for the storage, use, or consumption of tangible personal property shall bear interest and be subject to the same penalties as is provided in this article and article 21 of this title for nonpayment or delinquencies of sales taxes.
(4) All sums of money paid by the purchaser to the retailer as taxes imposed by this article shall be and remain public money, the property of the state in the hands of such retailer, and he shall hold the same in trust for the sole use and benefit of the state until paid to the executive director of the department of revenue. For failure to so pay to the executive director, such retailer shall be punished as provided by law.
(5) (a) (I) If a person neglects or refuses to make a timely return in payment of the tax or to pay or correctly account for any tax as required by this article 26, the executive director of the department of revenue shall make an estimate, based upon the information that may be available, of the amount of taxes due or not accounted for or incorrectly accounted for on a return for the period for which the taxpayer is delinquent. The executive director shall add to the estimated amount of taxes due or not accounted for interest if applicable under section 39-21-110.5, and a penalty equal to the greater of:
(A) The sum of fifteen dollars; or
(B) Ten percent of such unpaid, unaccounted, or incorrectly accounted amount, plus one-half percent per month from the date when due, not exceeding eighteen percent in the aggregate.
(II) The executive director shall provide the delinquent taxpayer written notice of the estimated taxes, penalty, and interest by first-class mail as set forth in section 39-21-105.5.
(b) Such estimate shall thereupon become a notice of deficiency as provided in section 39-21-103. At the delinquent taxpayer's request, a hearing shall be held and the executive director shall make a final determination pursuant to said section. The taxpayer may appeal said final determination in the manner provided in section 39-21-105.
C.R.S. § 39-26-204.5 Remittance of tax - electronic database - retailer held harmless - repeal
39-26-204.5. Remittance of tax - electronic database - retailer held harmless - repeal. (1) (a) The provisions of section 39-26-105.3 allowing vendors to be held harmless for collecting the incorrect amount of tax due on a purchase when relying on a certified database to determine the jurisdictions to which tax is owed shall apply to any retailer doing business in this state and making sales of tangible personal property for storage, use, or consumption in the state that collects and remits use tax to the department of revenue as provided by law.
(b) This subsection (1) is repealed, effective ninety days after the date that the revisor of statutes is notified by the department of revenue that a geographic information system that meets the defined scope of work set forth in the request for solicitation, provided by the state, is online, tested, and verified by the department of revenue to be operational, supported, and available for a retailer to use to determine the taxing jurisdiction in which an address resides. The department of revenue shall notify the revisor of statutes in writing, by email to revisorofstatutes.ga@coleg.gov, no later than fifteen days after such a system is online, tested, and verified by the department of revenue to be operational, supported, and available for use.
(2) The provisions of section 39-26-105.2 allowing vendors to be held harmless for collecting the incorrect amount of tax due on a purchase when using the data contained in the GIS database, or using data from a third-party database that is verified to use the most recent information provided by the GIS database, to determine the jurisdictions to which tax is owed applies to any retailer doing business in this state and making sales of tangible personal property for storage, use, or consumption in the state that collects and remits use tax to the department of revenue as provided by law.
C.R.S. § 39-26-204.6 Remittance of tax - determination of address - motor vehicle dealer held harmless
39-26-204.6. Remittance of tax - determination of address - motor vehicle dealer held harmless. The hold harmless provisions of section 39-26-105.4 shall apply to any licensed motor vehicle dealer doing business in this state and making sales of motor vehicles for storage, use, or consumption in the state that collects and remits use tax to the department of revenue as provided by law.
C.R.S. § 39-26-205 Tax constitutes lien - exemption from lien
39-26-205. Tax constitutes lien - exemption from lien. (1) The tax imposed by section 39-26-202 shall be a first and prior lien on the tangible personal property stored, used, or consumed, subject only to any valid mortgage or other liens of record on and prior to the recording of notice as required by section 39-26-118 (3), and, when such tax is collected by retailers or agents, shall be a first and prior lien on all the stock of goods or business fixtures of or used by such retailer, excepting goods sold in the ordinary course of business, which lien shall have precedence over all other liens of whatsoever kind or nature, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights have attached prior to the filing of the notice on property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer.
(2) Upon default of payment thereof, the executive director of the department of revenue, after demand upon the person owing such tax, may bring an action in his name as executive director in attachment and seize property as authorized by this section to secure the payment of said tax, interest, and penalties. In any such proceeding, no bond shall be required of the executive director, nor shall any sheriff require from the executive director an indemnifying bond for executing the writ of attachment or levy, and no sheriff shall be liable in damages when acting in accordance with such writs. The remedies provided in this section shall be in addition to all other remedies.
(3) Any taxpayer or person in possession shall provide a copy of any lease pertaining to the assets and property described in subsection (1) of this section to the department of revenue within ten days after seizure by the department of such assets and property. The department shall verify that such lease is bona fide and notify the owner that such lease has been received by the department. The department shall use its best efforts to notify the owner of the real or personal property which might be subject to the lien created in subsection (1) of this section. The real or personal property of an owner who has made a bona fide lease to any taxpayer described in subsection (1) of this section shall be exempt from the lien created therein if such property can reasonably be identified from the lease description or if the lessee is given an option to purchase in such lease and has not exercised such option to become the owner of the property leased. This exemption shall be effective from the date of the execution of the lease. Such exemption shall also apply if the lease is recorded with the county clerk and recorder of the county where the property is located or based or a memorandum of the lease is filed with the department of revenue on such forms as may be prescribed by said department after the execution of the lease at a cost for such filing of two dollars and fifty cents per document. Motor vehicles which are properly registered in this state, showing the lessor as owner thereof, shall be exempt from the lien created in subsection (1) of this section; except that said lien shall apply to the extent that the lessee has an earned reserve, allowance for depreciation not to exceed fair market value, or similar interest which is or may be credited to the lessee. Where the lessor and lessee are blood relatives or relatives by law or have twenty-five percent or more common ownership, a lease between such lessee and such lessor shall not be considered as bona fide for purposes of this section.
(3.5) Any coin-operated vending machine or video or other game machine shall be exempt from the lien created in subsection (1) of this section if:
(a) The machine is placed on the retailer's premises under the terms of a lease or other agreement under which the retailer is given no right to become the owner of the machine;
lessor shall not be considered as bona fide for purposes of this section.
(3.5) Any coin-operated vending machine or video or other game machine shall be exempt from the lien created in subsection (1) of this section if:
(a) The machine is placed on the retailer's premises under the terms of a lease or other agreement under which the retailer is given no right to become the owner of the machine;
(b) The machine is plainly marked in a location accessible to agents of the department of revenue with information sufficient to permit identification of the owner of said property; and
(c) The owner of the machine has filed with the department of revenue a schedule listing the machine by serial number and including thereon the owner's full name and the address of his business and such other information as the executive director of the department of revenue may require. To protect the anonymity of owners of property, the executive director of the department of revenue may permit the marking of property covered by this subsection (3.5) to be marked using numbers or other coded identification.
(4) Any retailer who is in possession of property under the terms of a lease, which property is exempt from the lien as provided in this section, may be required by the executive director to remit tax funds due at more frequent intervals than monthly, but no more frequently than semimonthly, or may be required to furnish security for the proper payment of taxes whenever the collection of taxes appears to be in jeopardy.
C.R.S. § 39-26-206 Failure to make return
39-26-206. Failure to make return. Any person who willfully fails or refuses to make the return required in section 39-26-204, or who makes a false or fraudulent return, or who willfully fails to pay any tax owing by him, and any person who aids or abets another in an attempt to evade such tax, shall be punished as provided by section 39-21-118.
C.R.S. § 39-26-207 Penalty interest on unpaid tax
39-26-207. Penalty interest on unpaid tax. Any tax due and unpaid under this part 2 shall be a debt to the state, and shall draw interest at the rate imposed under section 39-21-110.5, in addition to the interest provided by section 39-21-109, from the time when due until paid. The executive director of the department of revenue may recover at law the amount of such tax and interest in a suit instituted by the attorney general in the name of the executive director of the department of revenue, and this remedy shall be in addition to all other remedies.
C.R.S. § 39-26-208 Collection of use tax - motor vehicles
39-26-208. Collection of use tax - motor vehicles. (1) No registration shall be made of a motor or other vehicle for which registration is required and no certificate of title shall be issued for such vehicle or for a mobile home by the department of revenue or its authorized agent until any tax due upon the storage, use, or consumption thereof pursuant to section 39-26-202 or imposed by ordinance of any municipality or resolution of any county has been paid.
(2) If an applicant for registration and certificate of title for any motor or other vehicle or for a certificate of title for a mobile home fails to show payment of the taxes applicable under this section by means of proper receipts therefor, the department of revenue or its authorized agent shall collect all such applicable taxes at the time such application is made.
(3) Revenues due the state and collected pursuant to this section shall be distributed as are other revenues under this part 2, and revenues due any municipality so collected shall be distributed as specified by contract entered into with the department of revenue pursuant to section 24-35-110, C.R.S.
(4) To facilitate collection of taxes as provided in this section, the governing body of each municipality which has imposed a tax upon storage, use, or consumption shall certify to the department of revenue and to the county clerk and recorder of the county in which such municipality is located a true copy of its current applicable tax ordinances and shall likewise certify any subsequent changes therein.
C.R.S. § 39-26-209 Rules and regulations
39-26-209. Rules and regulations. The administration of this part 2 is vested in the executive director of the department of revenue, and he shall prescribe forms, rules, and regulations for the administration and enforcement of this part 2.
C.R.S. § 39-26-210 Limitations
39-26-210. Limitations. [Editor's note: This version of this section is effective until July 1, 2025.] The taxes for any period, together with the interest thereon and penalties with respect thereto, imposed by this part 2 shall not be assessed, nor shall any notice of lien be filed, or distraint warrant issued, or suit for collection be instituted, nor any other action to collect the same be commenced, more than three years after the date on which the tax was or is payable, except as set forth in section 29-2-106.1 (5)(b); nor shall any lien continue after such period, except for taxes assessed before the expiration of such period, notice of lien with respect to which has been filed prior to the expiration of such period, in which cases such lien shall continue only for one year after the filing of notice thereof. In the case of a false or fraudulent return with intent to evade tax, the tax, together with interest and penalties thereon, may be assessed, or proceedings for the collection of such taxes may be begun at any time. Before the expiration of such period of limitation, the taxpayer and the executive director of the department of revenue may agree in writing to an extension thereof, and the period so agreed on may be extended by subsequent agreements in writing.
C.R.S. § 39-26-211 Applicability to banks
39-26-211. Applicability to banks. The provisions of this part 2 shall apply to national banking associations and to banks organized and chartered under the laws of this state.
C.R.S. § 39-26-212 Legislation modifying the state use tax base - no impact on local government use tax bases - no expansion of local authority to levy use tax
39-26-212. Legislation modifying the state use tax base - no impact on local government use tax bases - no expansion of local authority to levy use tax. (1) Notwithstanding the provisions of section 29-2-105 (1)(d), C.R.S., any provision of title 32, C.R.S., or any other provision of law, and except as set forth in subsection (3) of this section, the levying of use tax on, exemption from use tax for, or local option to levy use tax on or provide an exemption from use tax for any tangible personal property or services under the use tax ordinance or resolution of any county, municipality, special district, authority, or other local government or political subdivision of the state shall not be affected in any way by the elimination, suspension, or modification of any use tax exemption or any other legislative modification of the state use tax base resulting from the enactment of any of the following bills:
(a) House Bill 10-1189, enacted in 2010;
(b) House Bill 10-1190, enacted in 2010;
(c) House Bill 10-1191, enacted in 2010;
(d) House Bill 10-1194, enacted in 2010;
(e) House Bill 10-1195, enacted in 2010.
(2) Except as set forth in subsection (3) of this section, this section does not create or expand, and shall not be construed to create or expand, any authority of any county, municipality, special district, authority, or other local government or political subdivision of the state to levy use tax.
(3) Beginning January 1, 2014, subsection (1) of this section does not apply to the regional transportation district established by article 9 of title 32, C.R.S., and the scientific and cultural facilities district established by article 13 of title 32, C.R.S., which levy sales and use tax upon every transaction or other incident with respect to which a sales and use tax is levied by the state.
C.R.S. § 39-26-401 Definitions
39-26-401. Definitions. As used in this part 4, unless the context otherwise requires:
(1) "Biotechnology" means:
(a) The application of technologies to produce or modify products, to develop microorganisms for specific uses, to identify targets for small pharmaceutical development, or to transform biological systems into useful processes or products; and
(b) The potential endpoints of the resulting products, processes, microorganisms, or targets are for improving human or animal health-care outcomes.
(2) "Clean technology" means:
(a) Renewable energy generation technologies, including but not limited to solar, wind, biofuel, and geothermal energy generation technologies;
(b) Products and technologies used in renewable energy development and generation on a commercial scale; or
(c) Products and technologies that enhance the efficient extraction, collection, storage, distribution, production, or consumption of energy from any type of source.
(d) Repealed.
(3) "Medical technology" means a therapeutic or diagnostic machine or tool used to improve human or animal health.
(4) "Qualified biotechnology taxpayer" means a C corporation, as defined in section 39-22-103 (2.5), a partnership, as defined in section 39-22-103 (5.6), a limited liability company that is not a C corporation, an S corporation, as defined in section 39-22-103 (10.5), or a sole proprietorship that purchases, stores, uses, or consumes tangible personal property to be used in Colorado directly and predominately in research and development of biotechnology.
(5) "Qualified medical technology or clean technology taxpayer" means a taxpayer that:
(a) Is a C corporation, as defined in section 39-22-103 (2.5); a partnership, as defined in section 39-22-103 (5.6); a limited liability company that is not a C corporation; an S corporation, as defined in section 39-22-103 (10.5); or a sole proprietorship;
(b) Employs thirty-five or fewer full-time employees in Colorado;
(c) Is headquartered in Colorado or has more than fifty percent of its employees in Colorado; and
(d) Conducts research and development of medical technology or clean technology.
(6) "Research and development" means qualified research as defined by 26 U.S.C. sec. 41 (d)(1).
(7) "Tangible personal property" includes capital equipment, instruments, apparatus, and supplies used in laboratories, including, but not limited to, microscopes, machines, glassware, chemical reagents, computers, computer software, and technical books and manuals.
C.R.S. § 39-26-402 Refund of state sales and use tax for biotechnology - application requirements and procedures
39-26-402. Refund of state sales and use tax for biotechnology - application requirements and procedures. (1) For the calendar year commencing January 1, 1999, and for each calendar year thereafter prior to January 1, 2026, each qualified biotechnology taxpayer shall be allowed to claim a refund of all state sales and use tax paid by the qualified biotechnology taxpayer, pursuant to parts 1 and 2 of this article 26, on the sale, storage, use, or consumption of tangible personal property to be used in Colorado directly and predominately in research and development of biotechnology during that calendar year.
(2) To claim the refund allowed by subsection (1) of this section, a qualified biotechnology taxpayer shall submit a refund application to the department of revenue on a form provided by the department. Such application shall be submitted no earlier than January 1 and no later than April 1 of the calendar year following the calendar year for which the refund is claimed. The application shall be accompanied by proof of payment of state sales and use taxes paid by the qualified biotechnology taxpayer in the immediately preceding calendar year. The application shall also include any additional information that the department of revenue may require by rule, which may include, without limitation, a detailed list of all expenditures that support a claim for a refund, the name and addresses of an individual who maintains records of such expenditures, and a statement that the qualified biotechnology taxpayer agrees to furnish records of all such expenditures to the department of revenue upon request. No refund shall be allowed if the qualified biotechnology taxpayer has not complied with this subsection (2).
C.R.S. § 39-26-403 Refund of state sales and use tax for medical technology and clean technology - application requirements and procedures - legislative declaration - repeal
39-26-403. Refund of state sales and use tax for medical technology and clean technology - application requirements and procedures - legislative declaration - repeal. (Repealed)
C.R.S. § 39-26-404 Repeal of part
39-26-404. Repeal of part. This part 4 is repealed, effective December 31, 2029.
C.R.S. § 39-26-501 Definitions
39-26-501. Definitions. (Repealed)
C.R.S. § 39-26-502 Fiscal years commencing on or after July 1, 1999 - temporary refund of state sales and use tax paid for pollution control equipment to refund state revenues exceeding TABOR limit - application requirements and procedures - legislative declaration
39-26-502. Fiscal years commencing on or after July 1, 1999 - temporary refund of state sales and use tax paid for pollution control equipment to refund state revenues exceeding TABOR limit - application requirements and procedures - legislative declaration. (Repealed)
C.R.S. § 39-26-601 Definitions
39-26-601. Definitions. (Repealed)
C.R.S. § 39-26-602 Fiscal years commencing on or after July 1, 2002 - temporary refund of state sales and use tax paid for tangible personal property used for research and development to refund state revenues exceeding TABOR limit - application requirements and procedures - legislative declaration
39-26-602. Fiscal years commencing on or after July 1, 2002 - temporary refund of state sales and use tax paid for tangible personal property used for research and development to refund state revenues exceeding TABOR limit - application requirements and procedures - legislative declaration. (Repealed)
C.R.S. § 39-26-701 Definitions
39-26-701. Definitions. In addition to the definitions in section 39-26-102, as used in this part 7, unless the context otherwise requires:
(1) "Storage" or "storing" means any keeping or retention of, or exercise of dominion or control over, tangible personal property in this state.
C.R.S. § 39-26-702 Department of revenue - rules
39-26-702. Department of revenue - rules. The department of revenue shall adopt rules for the administration and enforcement of this part 7.
C.R.S. § 39-26-703 Disputes and refunds - repeal
39-26-703. Disputes and refunds - repeal. (1) Should a dispute arise between the purchaser and seller as to whether or not any sale, service, or commodity is exempt from taxation pursuant to this part 7, nevertheless the seller shall collect and the purchaser shall pay the tax, and the seller shall thereupon issue to the purchaser a receipt showing the tax paid.
(2) (a) (Deleted by amendment, L. 2011, (HB 11-1265), ch. 228, p. 978, § 3, effective May 27, 2011.)
(b) The right of any person to a refund under this article shall not be assignable, and, except as provided in paragraph (c) of this subsection (2) and subsection (2.5) of this section, such application for refund shall be made by the same person who purchased the goods and paid the tax thereon as shown in the invoice of the sale.
(c) A refund shall be made or a credit allowed by the executive director of the department of revenue to any person entitled to an exemption where the person establishes: That a tax was paid by another on a purchase made on behalf of such person; that a refund has not been granted to the person making the purchase; and that the person entitled to exemption paid or reimbursed the purchaser for such tax. No such refund shall be made or credit allowed in an amount greater than the tax paid.
(c.5) The executive director of the department of revenue shall make a refund or allow a credit to any person who establishes that he or she has overpaid the tax due pursuant to this article 26. No such refund shall be made or credit allowed in an amount greater than the tax paid.
(d) [Editor's note: This version of subsection (2)(d) is effective until July 1, 2025.] An application for refund under subsection (2)(c) or (2)(c.5) of this section must be made within the applicable deadline and must be made on forms prescribed and furnished by the executive director of the department of revenue, which form must contain, in addition to the foregoing information, such other pertinent data, information, or documentation as the executive director prescribes by rules promulgated in accordance with article 4 of title 24. Except as set forth in sections 29-2-106.1 (5)(b) and 39-26-734 (4)(d), the deadline for a sales tax refund or a refund of any use tax collected by a vendor is three years after the twentieth day of the month following the date of purchase and the deadline for any other use tax refund is three years after the twentieth day of the month following the initial date of the storage, use, or consumption in the state by the person applying for the refund.
(d) [Editor's note: This version of subsection (2)(d) is effective July 1, 2025.] An application for refund under subsection (2)(c) or (2)(c.5) of this section must be made within the applicable deadline and must be made on forms prescribed and furnished by the executive director of the department of revenue, which form must contain, in addition to the foregoing information, such other pertinent data, information, or documentation as the executive director prescribes by rules promulgated in accordance with article 4 of title 24. Except as set forth in sections 39-26-734 (4)(d), 29-2-208 (2)(a)(III), and 29-2-302 (5)(b), the deadline for a sales tax refund or a refund of any use tax collected by a vendor is three years after the twentieth day of the month following the date of purchase and the deadline for any other use tax refund is three years after the twentieth day of the month following the initial date of the storage, use, or consumption in the state by the person applying for the refund.
nd 29-2-302 (5)(b), the deadline for a sales tax refund or a refund of any use tax collected by a vendor is three years after the twentieth day of the month following the date of purchase and the deadline for any other use tax refund is three years after the twentieth day of the month following the initial date of the storage, use, or consumption in the state by the person applying for the refund.
(d.5) Upon receipt of the application and proof of the matters contained therein, the executive director of the department of revenue shall give notice to the applicant by order in writing of the executive director's decision. Aggrieved applicants, within thirty days after such decision is mailed to them, may petition the executive director for a hearing on the claim in the manner provided in section 39-21-103 and may appeal to the district courts in the manner provided in section 39-21-105.
(e) The proceeds of any claim for refund shall first be applied by the department of revenue to any tax deficiencies or liabilities existing against the claimant before allowance of the claim by the department; except that, if such excess payment of tax moneys in any period is discovered as a result of audit by the department and deficiencies are discovered and assessed against the taxpayer as a result of the audit, the excess moneys shall be first applied against any deficiencies outstanding to the date of the assessment but shall not be applied to any future tax liabilities.
(2.5) (a) [Editor's note: This version of subsection (2.5)(a) is effective until July 1, 2025.] Except as set forth in section 29-2-106.1 (5)(b), within three years after the due date of the return showing the overpayment or one year after the date of overpayment, whichever is later, a vendor shall file any claim for refund with the executive director of the department of revenue. The executive director shall promptly examine such claim and shall make a refund or allow a credit to any vendor who establishes that such vendor overpaid the tax due pursuant to this article.
(2.5) (a) [Editor's note: This version of subsection (2.5)(a) is effective July 1, 2025.] Except as set forth in sections 29-2-208 (2)(a)(III) and 29-2-302 (5)(b), within three years after the due date of the return showing the overpayment or one year after the date of overpayment, whichever is later, a vendor shall file any claim for refund with the executive director of the department of revenue. The executive director shall promptly examine such claim and shall make a refund or allow a credit to any vendor who establishes that such vendor overpaid the tax due pursuant to this article 26.
(b) (I) A vendor may claim a refund on behalf of any purchaser of the vendor if:
(A) The purchaser could timely file a claim for a refund on his or her own behalf; and
(B) The vendor establishes to the satisfaction of the executive director of the department of revenue that the amount claimed, including any interest payable pursuant to section 39-21-110, has been or will actually be paid by the vendor to the purchaser.
(II) Nothing in this paragraph (b) shall prohibit a vendor from taking a credit that the vendor believes to be due on a subsequent period return for an overpayment or for tax collected in error and subsequently refunded to a purchaser; except that such credit shall be subject to audit and shall not bear any interest pursuant to section 39-21-110.
l actually be paid by the vendor to the purchaser.
(II) Nothing in this paragraph (b) shall prohibit a vendor from taking a credit that the vendor believes to be due on a subsequent period return for an overpayment or for tax collected in error and subsequently refunded to a purchaser; except that such credit shall be subject to audit and shall not bear any interest pursuant to section 39-21-110.
(c) No vendor shall be compelled by any party to file a refund claim pursuant to paragraph (b) of this subsection (2.5). It shall be a complete defense to any claim by a purchaser against a vendor for tax collected in error that the vendor has paid the tax over to the department of revenue. Any action by a purchaser for tax collected by a vendor in error that has been remitted to the department must be made pursuant to subsection (2) of this section and section 39-21-108.
(3) If any person is convicted under the provisions of section 39-21-118, the convictions shall be prima facie evidence that all refunds received by the person during the current year were obtained unlawfully, and the executive director of the department of revenue is empowered to bring appropriate action for recovery of such refunds. A brief summary statement of the above mentioned penalties shall be printed on each form application for refund.
(4) The burden of proving that sales, services, and commodities on which tax refunds are claimed are exempt from taxation under this part 7, or were not at retail, shall be on the one making such claim under such reasonable requirements of proof as the executive director of the department of revenue prescribes. Should the applicant for refund be aggrieved at the final decision of the executive director, the applicant may proceed to have the same reviewed by the district courts in the manner provided for review of other decisions of the executive director as provided in section 39-21-105.
(5) (a) (I) If a purchaser files a claim for refund of tax paid described in subsection (5)(b) of this section and pursuant to this article 26 to a vendor on or after July 1, 2022, but before July 1, 2026, the executive director of the department of revenue shall assess and collect, in addition to other penalties provided by law, a civil penalty as follows:
(A) Five percent of the total refund claimed if the claim is found to be materially incomplete; and
(B) Ten percent of the amount of the refund claim that is found to be duplicative or lacking a reasonable basis in law or in fact.
(II) The civil penalty imposed by this subsection (5) applies only to claims totaling five thousand dollars or more.
(III) The executive director of the department of revenue shall assess and collect, in the same manner as a sales or use tax deficiency, the civil penalty imposed by this subsection (5) from the purchaser unless the claim for refund is prepared, in whole or in part, by a person other than the purchaser, in which case the penalty is imposed on that person. The executive director shall give the person against whom the penalty is assessed written notice of the penalty in accordance with section 39-21-105.5. Within thirty days after such notice is mailed, the person against whom the penalty was assessed may petition the executive director for a hearing on the notice in the manner provided in section 39-21-103 and may appeal to the district court in the manner provided in section 39-21-105.
(b) A claim for refund is subject to the penalty under this subsection (5) if:
(I) It is incomplete;
(II) It includes a purchase for which an earlier claim for refund has already been filed; or
(III) It, or any part of it, lacks a reasonable basis in law or in fact.
ice in the manner provided in section 39-21-103 and may appeal to the district court in the manner provided in section 39-21-105.
(b) A claim for refund is subject to the penalty under this subsection (5) if:
(I) It is incomplete;
(II) It includes a purchase for which an earlier claim for refund has already been filed; or
(III) It, or any part of it, lacks a reasonable basis in law or in fact.
(c) (I) A claim for refund is incomplete if it does not include the form and substantially all of the pertinent data, information, and documentation required by subsection (2)(d) of this section and the rules promulgated thereunder.
(II) Prior to assessing a penalty for a claim for refund due to incompleteness under subsection (5)(b)(I) of this section, the executive director shall notify the purchaser or the preparer of the claim, if any, that the claim appears to be incomplete. The notification must specify the pertinent data, information, and documentation that appears to be missing and must state that failure to either correct the omission or withdraw the claim for refund within sixty days of the date of the notice, plus such additional time allowed by the executive director for reasonable cause shown, will result in the assessment and collection of the civil penalty allowed under this subsection (5). Correcting the omission requires the purchaser or preparer to provide the missing data, information, and documentation and to demonstrate why the claim is not incomplete.
(d) If an application for refund is identified at the time of filing as a protective claim filed in order to preserve the right to a refund prior to the expiration of the statute of limitations, the executive director shall determine if the claim for refund is subject to the penalty under this subsection (5) after the claim for refund is perfected.
(e) The executive director of the department of revenue may waive the civil penalty imposed by this subsection (5) if the person against whom the penalty is assessed:
(I) Establishes that a duplicate claim was not intentional and was either minimal or immaterial; or
(II) Demonstrates other good cause for waiver of the civil penalty.
(f) This subsection (5) is repealed, effective July 1, 2030.
C.R.S. § 39-26-704 Miscellaneous sales tax exemptions - governmental entities - hotel residents - schools - exchange of property
39-26-704. Miscellaneous sales tax exemptions - governmental entities - hotel residents - schools - exchange of property. (1) All sales to the United States government and to the state of Colorado, its departments and institutions, and the political subdivisions thereof in their governmental capacities only shall be exempt from taxation under the provisions of part 1 of this article.
(1.5) All transactions specified in section 29-4-227 (1), C.R.S., are exempt from taxation under the provisions of parts 1 and 2 of this article.
(2) There shall be exempt from taxation under the provisions of part 1 of this article 26 all sales that the state of Colorado is prohibited from taxing under the constitution or laws of the United States or the state of Colorado.
(3) (a) There shall be exempt from taxation under the provisions of part 1 of this article 26 all sales and purchases of commodities and services under the provisions of section 39-26-102 (11) to any natural person who is a permanent resident of any hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court or park and who enters into or has entered into a written agreement for occupancy of a room or accommodations for a period of at least thirty consecutive days during the calendar year or preceding year.
(b) Notwithstanding any provision of law to the contrary, on or after January 1, 2021, for any local government or political subdivision of the state that levies a sales or use tax based on the sales or use tax levied by the state pursuant to this article 26, all sales and purchases of commodities and services under the provisions of section 39-26-102 (11) to any occupant who is a permanent resident of any hotel, apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court or park and who enters into or has entered into a written agreement for occupancy of a room or accommodations for a period of at least thirty consecutive days during the calendar year or preceding calendar year shall be exempt from the sales or use tax of such local government or political subdivision, unless the local government or political subdivision expressly subjects such sale to its sales or use tax for the applicable period at the time of adoption of its initial sales or use tax ordinance or resolution or subsequent amendment thereto.
(4) All sales made to schools, other than schools held or conducted for private or corporate profit, shall be exempt from taxation under the provisions of part 1 of this article.
(5) There shall be exempt from taxation under the provisions of part 1 of this article all transactions specified in section 39-26-104 (1)(b)(I) in which the fair market value of the exchanged property is excluded from the consideration or purchase price because the exchanged property is covered by section 39-26-104 (1)(b)(I)(A) or (1)(b)(I)(B), and in which, because there is no additional consideration involved in the transaction, there is no purchase price within the meaning of section 39-26-102 (7).
C.R.S. § 39-26-705 Miscellaneous use tax exemptions - printers ink and newsprint - manufactured goods
39-26-705. Miscellaneous use tax exemptions - printers ink and newsprint - manufactured goods. (1) The storage, use, or consumption of printers ink and newsprint shall be exempt from taxation under the provisions of part 2 of this article.
(2) There shall be exempt from taxation under the provisions of part 2 of this article the storage, use, or consumption of manufactured goods, including, but not limited to, high technology goods, donated by the manufacturer of such goods to the United States government; the state of Colorado or any department, institution, or political subdivision thereof; or any organization exempt from federal income taxes pursuant to section 501 (c)(3) of the "Internal Revenue Code of 1986", as amended, to the extent that the aggregate value of all such goods included in a single donation exceeds one thousand dollars.
C.R.S. § 39-26-706 Miscellaneous sales and use tax exemptions - internet access - refractory materials - precious metal bullion and coins
39-26-706. Miscellaneous sales and use tax exemptions - internet access - refractory materials - precious metal bullion and coins.
(1) (a) and (b) (Deleted by amendment, L. 2013.)
(c) (I) Notwithstanding any provision of law to the contrary, but except as set forth in subparagraph (II) of this paragraph (c), for any local government or political subdivision of the state that levies a sales or use tax based on the sales or use tax levied by the state pursuant to this article, the sale or storage, use, or consumption of cigarettes is exempt from the sales or use tax of such local government or political subdivision.
(II) Subparagraph (I) of this paragraph (c) does not apply to the regional transportation district established by article 9 of title 32, C.R.S., and the scientific and cultural facilities district established by article 13 of title 32, C.R.S., which, beginning January 1, 2014, levy sales and use tax upon every transaction or other incident with respect to which a sales and use tax is levied by the state.
(2) (a) On and after May 1, 1998, internet access services, as defined in section 24-79-102 (2)(b), C.R.S., shall be exempt from taxation under the provisions of part 1 of this article.
(b) From May 1, 1998, internet access services, as defined in section 24-79-102 (2)(b), C.R.S., shall be exempt from taxation under the provisions of part 2 of this article.
(3) All sales and purchases of and the storage, use, or consumption of refractory materials and carbon electrodes used by a person manufacturing iron and steel for sale or profit and all sales and purchases of and the storage, use, or consumption of inorganic chemicals used in the processing of vanadium-uranium ores shall be exempt from taxation under parts 1 and 2 of this article.
(4) (a) All sales of precious metal bullion and coins, as defined in section 39-26-102 (2.6) and (6.5), shall be exempt from taxation under the provisions of part 1 of this article.
(b) The storage, use, or consumption of precious metal bullion and coins, as defined in section 39-26-102 (2.6) and (6.5), shall be exempt from taxation under the provisions of part 2 of this article.
(5) On and after July 1, 2010, the collection of the waste tire fee pursuant to section 30-20-1403, C.R.S., is exempt from taxation under part 1 of this article.
C.R.S. § 39-26-707 Food, meals, beverages, and packaging - definitions
39-26-707. Food, meals, beverages, and packaging - definitions. (1) The following shall be exempt from taxation under the provisions of part 1 of this article 26:
(a) All sales of food purchased with food stamps. For the purposes of this subsection (1)(a), "food" has the same meaning as provided in 7 U.S.C. sec. 2012, as such section exists on October 1, 1987, or is thereafter amended.
(b) All sales of food purchased with funds provided by the special supplemental food program for women, infants, and children, as provided for in 42 U.S.C. sec. 1786. For the purposes of this paragraph (b), "food" shall have the same meaning as provided in 42 U.S.C. sec. 1786, as such section exists on October 1, 1987, or is thereafter amended.
(c) Any sale of any article to a retailer or vendor of food, meals, or beverages, which article is to be furnished to a consumer or user for use with articles of tangible personal property purchased at retail, if a separate charge is not made for the article to the consumer or user, if such article becomes the property of the consumer or user, together with the food, meals, or beverages purchased, and if a tax is paid on the retail sale as required by section 39-26-104 (1)(a) or (1)(e); except that, on or after March 1, 2010, any such article that is nonessential to the consumer or user, as determined by rules of the department of revenue promulgated in accordance with article 4 of title 24, C.R.S., shall be subject to state sales taxation;
(d) Any sale of any container or bag to a retailer or vendor of food, meals, or beverages, which container or bag is to be furnished to a consumer or user for the purpose of packaging or bagging articles of tangible personal property purchased at retail, if a separate charge is not made for the container or bag to the consumer or user, if such container or bag becomes the property of the consumer or user, together with the food, meals, or beverages purchased, and if a tax is paid on the retail sale as required by section 39-26-104 (1)(a) or (1)(e); except that, on and after March 1, 2010, any such container or bag that is nonessential to the consumer or user, as determined by rules of the department of revenue promulgated in accordance with article 4 of title 24, C.R.S., shall be subject to state sales taxation;
(e) Commencing January 1, 1980, all sales of food; and
(f) (I) (A) On and after July 1, 2016, all sales of food, food products, snacks, beverages, and meals provided for consumption by residents on the premises of a retirement community;
(B) On and after July 1, 2016, all sales to a retirement community of food, food products, snacks, beverages, and meals for purposes of a sale described in sub-subparagraph (A) of this subparagraph (I);
(C) On and after July 1, 2016, all sales of any container, bag, or article used by or furnished to a consumer for the purpose of packaging, bagging, or use with food, food products, snacks, beverages, and meals provided for consumption by residents on the premises of a retirement community; and
(D) On and after July 1, 2016, all sales to a retirement community of any container, bag, or article used by or furnished to a consumer for purposes of a sale described in sub-subparagraph (A) of this subparagraph (I).
(II) For purposes of this paragraph (f), "food" includes prepared salads, salad bars, and packaged and unpackaged cold sandwiches.
(1.5) (a) Notwithstanding the provisions of paragraph (e) of subsection (1) of this section, on and after May 1, 2010, sales of candy and soft drinks shall be subject to state sales taxation.
poses of a sale described in sub-subparagraph (A) of this subparagraph (I).
(II) For purposes of this paragraph (f), "food" includes prepared salads, salad bars, and packaged and unpackaged cold sandwiches.
(1.5) (a) Notwithstanding the provisions of paragraph (e) of subsection (1) of this section, on and after May 1, 2010, sales of candy and soft drinks shall be subject to state sales taxation.
(b) For the purposes of this subsection (1.5):
(I) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruit, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. "Candy" shall not include any preparation containing flour and shall require no refrigeration.
(II) "Soft drinks" means nonalcoholic beverages that contain natural or artificial sweeteners. "Soft drinks" do not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than fifty percent of vegetable or fruit juice by volume.
(2) The following shall be exempt from taxation under the provisions of part 2 of this article 26:
(a) Effective January 1, 1980, the storage, use, or consumption of food or meals that are provided to employees of the places described in section 39-26-104 (1)(e), if such are provided to such employees at no charge or at a reduced charge;
(b) The storage, use, or consumption of any article by a retailer or vendor of food, meals, or beverages, which article is to be furnished to a consumer or user for use with articles of tangible personal property purchased at retail, if a separate charge is not made for the article to the consumer or user, if the article becomes the property of the consumer or user, together with the food, meals, or beverages purchased, and if a tax is paid on the retail sale as required by section 39-26-104 (1)(a) or (1)(e); except that, on and after March 1, 2010, any such article stored, used, or consumed that is nonessential to the end consumer or user, as determined by rules of the department of revenue promulgated in accordance with article 4 of title 24, C.R.S., shall be subject to state use taxation;
(c) The storage, use, or consumption of any container or bag by a retailer or vendor of food, meals, or beverages, which container or bag is to be furnished to a consumer or user for the purpose of packaging or bagging articles of tangible personal property purchased at retail, if a separate charge is not made for the container or bag to the consumer or user, if the container or bag becomes the property of the consumer or user, together with the food, meals, or beverages purchased, and if a tax is paid on the retail sale as required by section 39-26-104 (1)(a) or (1)(e); except that, on and after March 1, 2010, any such container or bag stored, used, or consumed that is nonessential to the end consumer or user, as determined by rules of the department of revenue promulgated in accordance with article 4 of title 24, C.R.S., shall be subject to state use taxation;
(d) (I) Effective January 1, 1980, the storage, use, or consumption of food as defined in section 39-26-102 (4.5); except that, on and after May 1, 2010, the storage, use, or consumption of candy and soft drinks shall be subject to state use taxation.
(II) For the purposes of this paragraph (d):
(A) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruit, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. "Candy" shall not include any preparation containing flour and shall require no refrigeration.
(B) "Soft drinks" means nonalcoholic beverages that contain natural or artificial sweeteners. "Soft drinks" do not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than fifty percent of vegetable or fruit juice by volume.
of bars, drops, or pieces. "Candy" shall not include any preparation containing flour and shall require no refrigeration.
(B) "Soft drinks" means nonalcoholic beverages that contain natural or artificial sweeteners. "Soft drinks" do not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than fifty percent of vegetable or fruit juice by volume.
(e) (I) (A) On and after July 1, 2016, the storage, use, or consumption of food, food products, snacks, beverages, and meals provided for consumption by residents on the premises of a retirement community;
(B) On and after July 1, 2016, the storage, use, or consumption by a retirement community of food, food products, snacks, beverages, and meals for purposes of a sale described in sub-subparagraph (A) of subparagraph (I) of paragraph (f) of subsection (1) of this section;
(C) On and after July 1, 2016, the storage, use, or consumption of any container, bag, or article used by or furnished to a consumer for the purpose of packaging, bagging, or use with food, food products, snacks, beverages, and meals provided for consumption by residents on the premises of a retirement community; and
(D) On and after July 1, 2016, the storage, use, or consumption by a retirement community of any container, bag, or article used by or furnished to a consumer for purposes of a sale described in sub-subparagraph (A) of subparagraph (I) of paragraph (f) of subsection (1) of this section.
(II) For purposes of this paragraph (e), "food" includes prepared salads, salad bars, and packaged and unpackaged cold sandwiches.
(f) The storage, use, or consumption of all food purchased with food stamps. For purposes of this subsection (2)(f), "food" has the same meaning as provided in 7 U.S.C. sec. 2012, as such section exists on October 1, 1987, or is thereafter amended.
(g) The storage, use, or consumption of all food purchased with funds provided by the special supplemental food program for women, infants, and children, as provided for in 42 U.S.C. sec. 1786. For the purposes of this subsection (2)(g), "food" has the same meaning as provided in 42 U.S.C. sec. 1786, as such section exists on October 1, 1987, or is thereafter amended.
(2.5) For purposes of this section, "retirement community" means:
(a) An assisted living residence as defined in section 25-27-102 (1.3), C.R.S.;
(b) An independent living facility designed and operated specifically to serve as the primary residence for persons aged fifty-five or older that provides meals and other services to residents as part of a comprehensive fee, including a facility that qualifies as housing for older persons as defined in section 24-34-502 (7)(b) and a life care institution subject to article 49 of title 11; or
(c) A nursing care facility licensed under the authority of section 25-1.5-103 (1)(a)(I)(A), C.R.S., that provides services to persons who, due to physical condition, mental condition, or disability, require continuous or regular inpatient nursing care.
(3) The department of revenue may promulgate rules, in accordance with article 4 of title 24, C.R.S., to provide a means by which a person who sells candy or soft drinks at retail may, if necessary, reasonably estimate the amount of sales taxes due on such candy and soft drinks. For any return made prior to August 1, 2010, a person who sells candy or soft drinks at retail shall not be liable for any interest or other penalty imposed as a result of an error made in connection with the elimination of the exemption from state sales tax for sales of candy and soft drinks, as defined in paragraph (b) of subsection (1.5) of this section, by House Bill 10-1191, enacted in 2010.
For any return made prior to August 1, 2010, a person who sells candy or soft drinks at retail shall not be liable for any interest or other penalty imposed as a result of an error made in connection with the elimination of the exemption from state sales tax for sales of candy and soft drinks, as defined in paragraph (b) of subsection (1.5) of this section, by House Bill 10-1191, enacted in 2010.
(4) For any return made prior to June 1, 2010, a person who sells or stores, uses, or consumes items described in paragraphs (c) and (d) of subsection (1) and paragraphs (b) and (c) of subsection (2) of this section that are nonessential to the end consumer or user shall not be liable for any interest or other penalty imposed as a result of an error made in connection with the elimination of the exemption for such nonessential items from state sales and use tax by House Bill 10-1194, enacted in 2010.
C.R.S. § 39-26-708 Construction and building materials - legislative declaration - definition
39-26-708. Construction and building materials - legislative declaration - definition. (1) There shall be exempt from taxation under the provisions of part 1 of this article all sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration, or repair of structures, highways, roads, streets, and other public works owned and used by:
(a) The United States government, the state of Colorado, its departments and institutions, and the political subdivisions thereof in their governmental capacities only;
(b) Charitable organizations in the conduct of their regular charitable functions and activities; or
(c) Schools, other than schools held or conducted for private or corporate profit.
(2) There shall be exempt from taxation under the provisions of part 2 of this article the storage, use, or consumption by a contractor or subcontractor of construction and building materials for use in the building, erection, alteration, or repair of structures, highways, roads, streets, and other public works owned and used by:
(a) The United States government, the state of Colorado, its departments and institutions, and the political subdivisions thereof in their governmental capacities only;
(b) Charitable organizations in the conduct of their regular charitable functions and activities; or
(c) Schools, other than schools held or conducted for private or corporate profit.
(2.5) (a) The general assembly finds, determines, and declares that:
(I) The exemption under this section was enacted by the general assembly to reduce costs involved in the construction of public works;
(II) The exemption codifies the principle that contractors should not be paying a tax levied by governmental entities on building materials used for the benefit of those same governmental entities;
(III) Under current law, out of the state and all local governments across the state, the sales and use tax on construction and building materials used in the construction of public buildings is only levied by home rule cities;
(IV) The state's ability to honor its responsibilities under section 2 of article IX of the state constitution to provide for the establishment and maintenance of a thorough and uniform system of free public schools throughout the state is impaired when home rule cities tax public school construction materials because this tax increases the cost of providing public education within the boundaries of these municipalities as contrasted with public schools located within the boundaries of other municipalities that do not tax these materials;
(V) The state's responsibility to provide a thorough and uniform education is further impaired by the incentives created by the current tax disparities. Specifically, insofar as school districts serve the residents of multiple municipalities and not all of the municipalities tax public school construction materials, school districts are given incentives to build schools within those municipalities where the sales and use tax is not levied, rather than where the public schools are most needed, thereby depriving students and communities of local education resources.
(VI) Extending the exemption to include home rule cities would eliminate these barriers and disparities and assist the state in honoring its responsibilities under section 2 of article IX of the state constitution;
(VII) The current taxing system also creates negative extraterritorial impacts because taxpayers that reside in school districts that serve both taxing and nontaxing municipalities must subsidize the cost of the sales and use tax levied when public schools are built in municipalities that tax public school construction materials, even when such residents do not reside in the taxing municipality and their children do not attend public schools in the taxing municipality;
pacts because taxpayers that reside in school districts that serve both taxing and nontaxing municipalities must subsidize the cost of the sales and use tax levied when public schools are built in municipalities that tax public school construction materials, even when such residents do not reside in the taxing municipality and their children do not attend public schools in the taxing municipality;
(VIII) Extending the exemption to include the sales and use tax levied by home rule cities on public school construction materials would reduce the overall costs of constructing such facilities for the many jurisdictions across the state that are home rule cities; and
(IX) Extending the exemption to include home rule cities would also promote a uniform and consistent treatment of the sale of building and construction materials statewide, thereby facilitating a more consistent and uniform tax structure, would limit the negative extraterritorial effects of this disparate tax treatment, and enhance taxpayer equity in all school districts statewide. Accordingly, the matters addressed in subsection (2.5)(b) of this section are matters of statewide concern.
(b) Notwithstanding any other provision of law, in addition to the exemption from taxation created by subsections (1) and (2) of this section, there shall also be exempt from taxation under part 1 of this article 26 any tax levied by a home rule city on all sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration, or repair of a public school.
(c) As used in subsection (2.5)(b) of this section, "public school" means a school that serves any of grades kindergarten through twelve and that derives its support, in whole or in part, from revenue raised by a general state or school district tax. "Public school" includes a charter school authorized by a school district pursuant to part 1 of article 30.5 of title 22, by the state charter school institute pursuant to part 5 of article 30.5 of title 22, or by the Colorado school for the deaf and the blind pursuant to section 22-80-102 (4).
(3) On application by a purchaser or seller, the department of revenue shall issue to a contractor or subcontractor a certificate of exemption indicating that the contractor's or subcontractor's purchase of construction or building materials is for a purpose stated in subsection (1) of this section and is, therefore, free from sales tax. Unless the department determines pursuant to section 39-26-730 (2) that forms can be consolidated or eliminated, the department shall provide forms for the application and certificate and shall have the authority to verify that the contractor or subcontractor is, in fact, entitled to the issuance of the certificate prior to such issuance.
C.R.S. § 39-26-709 Machinery and machine tools - definitions
39-26-709. Machinery and machine tools - definitions. (1) (a) The following shall be exempt from taxation under the provisions of part 1 of this article:
(I) (Deleted by amendment, L. 2004, p. 1022, § 2, effective July 1, 2004.)
(II) Except as allowed in section 39-30-106, on or after July 1, 1996, purchases of machinery or machine tools, or parts thereof, in excess of five hundred dollars to be used in Colorado directly and predominantly in manufacturing tangible personal property, for sale or profit, including any machinery or machine tools purchased by a business listed in the inventory prepared by the department of public health and environment pursuant to section 30-20-122 (1)(a)(V), C.R.S.; and
(III) (Deleted by amendment, L. 2008, p. 1323, § 8, effective May 27, 2008.)
(IV) Purchases of machinery and machine tools, or parts thereof, used in the production of electricity in a facility for which a long-term power purchase agreement was fully executed between February 5, 2001, and November 7, 2006, whether or not such purchases are capitalized or expensed.
(b) A parent corporation and all closely held subsidiary corporations, as defined in section 39-26-102 (10)(k), shall be considered one person for the purposes of this section and, as a group, shall be subject to the provisions of paragraph (a) of this subsection (1).
(c) As used in this subsection (1):
(I) "Long-term power purchase agreement" means an agreement executed between one or more independent power producers and a provider of retail electric service for a term of no less than ten years, pursuant to which the independent power producer or producers agree to sell all of the production offered for sale from a particular power generation facility for a specified price over a specified term.
(II) "Machinery" means any apparatus consisting of interrelated parts used to produce an article of tangible personal property. The term includes both the basic unit and any adjunct or attachment necessary for the basic unit to accomplish its intended function.
(III) "Manufacturing" means the operation of producing a new product, article, substance, or commodity different from and having a distinctive name, character, or use from raw or prepared materials, including the processing of recovered materials.
(III.5) (A) "Recovered materials" means those materials that have been separated, diverted, or removed from the waste stream for the purpose of remanufacturing, reuse, or recycling or, as allowed by subsection (1)(c)(III.6) of this section, those materials that have been derived from scrap metal or end-of-life-cycle metals for remanufacturing, reuse, or recycling into new metal stock that meets applicable standards for metal commodities sales.
(B) As used in this subsection (1)(c)(III.5), "applicable standards" means standards for recycled commodities recognized by the institute of scrap recycling industries.
(III.6) "Scrap metal processor" means any person who is engaged in the business of processing scrap metals who, from a fixed location, utilizes machinery and equipment for manufacturing ferrous and nonferrous metallic scrap into prepared grades and whose principal product is metallic scrap. The following items are exempt when purchased by a scrap metal processor and used in manufacturing prepared grade recycled metals: Mobile metal shears, stationary metal shears, metal shredders, conveyors used to move metal scrap or stock, loaders utilized to load metal scrap or stock, bailers to bundle metal stock, material handlers utilized for metal scrap or metal stock, excavators, magnets, grapples and torches utilized to break down metal scrap, and all other equipment directly used predominantly in the manufacturing of commodity grade recycled metals.
metal shears, metal shredders, conveyors used to move metal scrap or stock, loaders utilized to load metal scrap or stock, bailers to bundle metal stock, material handlers utilized for metal scrap or metal stock, excavators, magnets, grapples and torches utilized to break down metal scrap, and all other equipment directly used predominantly in the manufacturing of commodity grade recycled metals.
(IV) "Specified price" means a price set by a long-term power purchase agreement that is not dependent on either the cost of production or the market price of electricity; except that a specified price may provide for a percentage increase over time so long as the percentage increase is specified in the original long-term power purchase agreement and is also not dependent on either the cost of production or the market price of electricity.
(d) For purposes of this subsection (1), direct use in manufacturing is deemed to begin for items normally manufactured from inventoried raw material at the point at which raw material is moved from plant inventory on a contiguous plant site and to end at a point at which manufacturing has altered the raw material to its completed form, including packaging, if required. Machinery used during the manufacturing process to move material from one direct production step to another in a continuous flow and machinery used in testing during the manufacturing process is deemed to be directly used in manufacturing.
(e) In order to qualify for the exemption provided in this subsection (1), a purchase shall be of such nature that it would have qualified for the investment tax credit against federal income tax as was provided by section 38 of the federal "Internal Revenue Code of 1954", as amended.
(f) An exemption may not be claimed under this section for sales tax paid in another state that is credited against Colorado sales tax or use tax or both.
(g) Unless the department of revenue determines pursuant to section 39-26-730 (2) that the declaration can be consolidated with another form or eliminated, to receive an exemption under this subsection (1), a declaration of entitlement shall be filed by the purchaser with the vendor of the machinery or machine tools, or parts thereof, and with the executive director of the department.
(2) Effective July 1, 1979, the storage, use, or consumption of machinery or machine tools, or parts thereof, exempt from sales tax by subsection (1) of this section shall be exempt from taxation under the provisions of part 2 of this article.
C.R.S. § 39-26-710 Railroads - construction and building materials - tangible personal property - work equipment - rolling stock
39-26-710. Railroads - construction and building materials - tangible personal property - work equipment - rolling stock. (1) The following shall be exempt from taxation under the provisions of part 1 of this article:
(a) The sale of construction and building materials to a common carrier by rail operating in interstate or foreign commerce for use by the common carrier in construction and maintenance of its railroad tracks; however, any actual use of such construction and building materials shall, at the time of the actual use, be subject to the tax imposed by part 2 of this article and any use tax imposed pursuant to article 2 of title 29, C.R.S.;
(b) The sale of tangible personal property that is to be affixed or attached as a component part of a locomotive, a freight car, railroad work equipment, or other railroad rolling stock; and
(c) The sale of locomotives, freight cars, railroad work equipment, and other railroad rolling stock used or purchased for use in interstate commerce by a railroad company.
(2) The following shall be exempt from taxation under the provisions of part 2 of this article:
(a) The storage, use, or consumption of any tangible personal property that is to be affixed or attached as a component part of a locomotive, a freight car, railroad work equipment, or other railroad rolling stock; and
(b) The storage, use, or consumption of locomotives, freight cars, railroad work equipment, and other railroad rolling stock used or purchased for use in interstate commerce by a railroad company.
C.R.S. § 39-26-711 Aircraft - tangible personal property
39-26-711. Aircraft - tangible personal property. (1) The following shall be exempt from taxation under the provisions of part 1 of this article:
(a) Effective July 1, 1984, the sale of aircraft used or purchased for use in interstate commerce by a commercial airline; and
(b) The sale of tangible personal property that is to be permanently affixed or attached as a component part of an aircraft.
(2) The following shall be exempt from taxation under the provisions of part 2 of this article:
(a) Effective July 1, 1984, the storage, use, or consumption of aircraft used or purchased for use in interstate commerce by a commercial airline; and
(b) The storage, use, or consumption of any tangible personal property that is to be permanently affixed or attached as a component part of an aircraft.
C.R.S. § 39-26-711.5 Aircraft - use outside state
39-26-711.5. Aircraft - use outside state. (1) The sale, storage, use, and consumption of a new or used aircraft shall be exempt from taxation under the provisions of part 1 and part 2 of this article 26 if:
(a) The aircraft is sold to a person who is not a resident of the state;
(b) The aircraft will be removed from the state within the longer of the following periods:
(I) One hundred twenty days after the date of the sale; or
(II) Thirty days after the completion of maintenance, interior refurbishment, paint, or engine work associated with the sale of the aircraft; and
(c) The aircraft will not be in the state more than seventy-three days in any of the three calendar years following the calendar year in which the aircraft is removed from the state pursuant to paragraph (b) of this subsection (1).
(2) A purchaser of an aircraft who claims the exemption allowed by this section shall, at the time of purchase and unless the department of revenue determines pursuant to section 39-26-730 (2) that the affidavit can be consolidated with another form or eliminated, provide to the seller an affidavit that the purchaser is not a resident of the state and that the purchaser agrees to pay the tax imposed by part 1 of this article 26 if the purchaser fails to comply with the requirements of subsection (1)(b) or (1)(c) of this section.
(3) An aircraft that is hangared or parked overnight shall be considered to be in the state for purposes of this section.
C.R.S. § 39-26-711.8 Aircraft - use outside state - on-demand air carriers
39-26-711.8. Aircraft - use outside state - on-demand air carriers. (1) Notwithstanding section 39-26-711.5, on and after July 1, 2014, but prior to July 1, 2019, the sale of a new or used aircraft shall be exempt from taxation under the provisions of part 1 and part 2 of this article if:
(a) The aircraft is purchased for use by an on-demand air carrier, regardless of whether the purchaser is a resident of the state;
(b) The aircraft will remain in the state only for the purpose of final assembly, maintenance, modification, or completion;
(c) The aircraft will be removed from the state within the longer of the following periods:
(I) One hundred twenty days after the date of the sale; or
(II) Thirty days after the completion of maintenance, interior refurbishment, paint, or engine work associated with the sale of the aircraft; and
(d) The aircraft will not be in the state more than seventy-three days in any of the three calendar years following the calendar year in which the aircraft is removed from the state pursuant to paragraph (c) of this subsection (1).
(2) A purchaser of an aircraft who claims the exemption allowed by this section shall, at the time of purchase and unless the department of revenue determines pursuant to section 39-26-730 (2) that the affidavit can be consolidated with another form or eliminated, provide to the seller an affidavit that the aircraft will be used by an on-demand air carrier and that the purchaser agrees to pay the tax imposed by part 1 or part 2 of this article 26, as applicable, if the purchaser fails to comply with the requirements of subsections (1)(b), (1)(c), and (1)(d) of this section.
(3) An aircraft that is hangared or parked overnight shall be considered to be in the state for purposes of this section.
C.R.S. § 39-26-711.9 Historic aircraft on loan for public display - definition
39-26-711.9. Historic aircraft on loan for public display - definition. (1) On and after August 9, 2017, a historic aircraft that is on loan for public display, demonstration, educational, or museum promotional purposes is exempt from taxation under the provisions of parts 1 and 2 of this article 26 if:
(a) The historic aircraft is on loan for public display, demonstration, educational, or museum promotional purposes to a publicly owned museum in the state or to a nonprofit museum in the state that operates under section 501 (c)(3) of the federal "Internal Revenue Code of 1986", as amended;
(b) The historic aircraft will be used only for public display, demonstration, educational, or museum promotional purposes while within the state but away from the museum to which the historic aircraft is on loan; and
(c) The museum to which the historic aircraft is on loan for public display, demonstration, educational, or museum promotional purposes is open to the public for at least twenty hours every week.
(2) For purposes of this section, "historic aircraft" means any original, restored, or replica of a heavier-than-air aircraft that is at least thirty-five years old.
C.R.S. § 39-26-712 Trailers and trucks
39-26-712. Trailers and trucks. (1) The following are exempt from taxation under the provisions of part 1 of this article 26:
(a) The sale of a new or used trailer, semitrailer, truck, truck tractor, or truck body manufactured within this state if such vehicle is purchased from the manufacturer for use exclusively outside this state or in interstate commerce and is delivered by the manufacturer to the purchaser within this state, if the purchaser drives or moves such vehicle to any point outside this state within thirty days after the date of delivery, and if, the purchaser furnishes an affidavit to the manufacturer that such vehicle will be permanently licensed and registered outside this state and will be removed from this state within thirty days after the date of delivery, unless the department of revenue determines pursuant to section 39-26-730 (2) that the affidavit can be consolidated with another form or eliminated; and
(b) The sale of a new or used trailer, semitrailer, truck, truck tractor, or truck body if such vehicle is purchased for use exclusively outside this state or in interstate commerce and is delivered by the manufacturer or licensed Colorado dealer to the purchaser within this state, if the purchaser drives or moves such vehicle to any point outside this state within thirty days after the date of delivery, and if the purchaser furnishes an affidavit to the seller that such vehicle will be permanently licensed and registered outside this state and will be removed from this state within thirty days after the date of delivery, unless the department of revenue determines pursuant to section 39-26-730 (2) that the affidavit can be consolidated with another form or eliminated.
(2) The following are exempt from taxation under the provisions of part 2 of this article 26:
(a) The storage or use of a new or used trailer, semitrailer, truck, truck tractor, or truck body manufactured within this state if such vehicle is purchased from the manufacturer for use exclusively outside this state or in interstate commerce and is delivered by the manufacturer to the purchaser within this state, if the purchaser drives or moves such vehicle to any point outside this state within thirty days after the date of delivery, and if the purchaser furnishes an affidavit to the manufacturer that such vehicle will be permanently licensed and registered outside this state and will be removed from this state within thirty days after the date of delivery, unless the department of revenue determines pursuant to section 39-26-730 (2) that the affidavit can be consolidated with another form or eliminated;
(b) The storage or use of a new or used trailer, semitrailer, truck, truck tractor, or truck body if such vehicle is purchased for use exclusively outside this state or in interstate commerce and is delivered by the manufacturer or licensed Colorado dealer to the purchaser within this state, if the purchaser drives or moves such vehicle to any point outside this state within thirty days after the date of delivery, and if the purchaser furnishes an affidavit to the seller that such vehicle will be permanently licensed and registered outside this state and will be removed from this state within thirty days after the date of delivery, unless the department of revenue determines pursuant to section 39-26-730 (2) that the affidavit can be consolidated with another form or eliminated; and
(c) The storage or use of a new or used trailer, semitrailer, truck, truck tractor, or truck body if the vehicle has been relocated within this state, was used in interstate commerce, and the owner can provide evidence of the vehicle being previously registered in another state for at least six months.
C.R.S. § 39-26-713 Tangible personal property
39-26-713. Tangible personal property. (1) The following shall be exempt from taxation under the provisions of part 1 of this article 26:
(a) Any right to the continuous possession or use for three years or less of any article of tangible personal property under a lease or contract, if the lessor has paid to the state of Colorado a sales or use tax on such tangible personal property upon its acquisition. The department of revenue may permit a lessor of tangible personal property leased for a period of three years or less to acquire the property free of sales or use tax if the lessor agrees to collect sales tax on all lease payments received on the property.
(b) Repealed.
(c) The sale of tangible personal property for testing, modification, inspection, or similar type of activities in this state if the ultimate use of the property in manufacturing or similar type of activities occurs outside of this state and if the test, modification, or inspection period does not exceed ninety days; and
(d) All sales and purchases of tangible personal property by a manufacturer that uses the property as a component part of goods that it manufactures, including, but not limited to, high technology goods, and that donates such goods to the United States government; the state of Colorado or any department, institution, or political subdivision thereof; or any organization exempt from federal income taxes pursuant to section 501 (c)(3) of the "Internal Revenue Code of 1986", as amended, to the extent that the aggregate value of the goods included in a single donation exceeds one thousand dollars.
(2) The following are exempt from taxation under part 2 of this article 26:
(a) The storage, use, or consumption of any tangible personal property the sale of which is subject to the retail sales tax imposed by part 1 of this article, including transactions that are exempt from taxation under section 39-26-704 (5);
(b) (I) The storage, use, or consumption of any tangible personal property purchased for resale in this state, either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of a business.
(II) For purposes of this subsection (2)(b), any motor vehicle purchased and held for resale in this state by a licensed motor vehicle dealer, as defined in section 44-20-102, who meets the eligibility requirements to receive a full-use dealer plate set forth in section 42-3-116 (6)(a)(I) shall be considered to be in the regular course of business and shall not be subject to taxation under part 2 of this article 26. A motor vehicle shall be considered to be purchased and held for resale if:
(A) The manufacturer's certificate of origin or certificate of title for the motor vehicle is assigned to the motor vehicle dealer;
(B) The motor vehicle is included in a current list of vehicles for retail sale that is prepared by the motor vehicle dealer in the ordinary course of business; and
(C) At any given time, the motor vehicle is available to be purchased and delivered to a retail customer within three business days.
(c) The storage, use, or consumption of tangible personal property brought into this state by a nonresident for his or her own storage, use, or consumption while temporarily within this state;
(d) The storage, use, consumption, or loan of tangible personal property by or to the United States government, the state of Colorado or its institutions or political subdivisions in their governmental capacities only, or any charitable organization in the conduct of its regular charitable functions and activities;
r his or her own storage, use, or consumption while temporarily within this state;
(d) The storage, use, consumption, or loan of tangible personal property by or to the United States government, the state of Colorado or its institutions or political subdivisions in their governmental capacities only, or any charitable organization in the conduct of its regular charitable functions and activities;
(e) (I) The storage, use, or consumption of tangible personal property by a person engaged in the business of manufacturing or compounding for sale, profit, or use any article, substance, or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the product or service that is manufactured, compounded, or furnished, and the container, label, or the furnished shipping case.
(II) As used in subparagraph (I) of this paragraph (e) with regard to food products, tangible personal property enters into the processing of such products and is therefore exempt from taxation when:
(A) It is intended that such property become an integral or constituent part of a food product that is intended to be sold ultimately at retail for human consumption; or
(B) Such property, whether or not it becomes an integral or constituent part of a food product, is a chemical, solvent, agent, mold, skin casing, or other material; is used for the purpose of producing or inducing a chemical or physical change in a food product or is used for the purpose of placing a food product in a more marketable condition; and is directly utilized and consumed, dissipated, or destroyed, to the extent it is rendered unfit for further use, in the processing of a food product that is intended to be sold ultimately at retail for human consumption.
(f) The storage, use, or consumption of any article of tangible personal property the sale or use of which has already been subjected to a tax equal to or in excess of that imposed by part 2 of this article. A credit shall be granted against the use tax imposed by part 2 of this article with respect to a person's storage, use, or consumption in this state of tangible personal property purchased by the person in another state. The amount of the credit shall be equal to the tax paid by the person to another state by reason of the imposition of a similar tax on the purchase or use of the property. The amount of the credit shall not exceed the tax imposed by part 2 of this article.
(g) The storage, use, or consumption of tangible personal property and household effects acquired outside of this state and brought into it by a nonresident acquiring residency;
(h) The storage, use, or consumption of tangible personal property purchased by a resident of Colorado while outside the state in amounts of one hundred dollars or less; and
(i) Repealed.
(j) The testing, modification, inspection, or similar type activities of tangible personal property acquired for ultimate use outside of this state in manufacturing or similar type of activities if the test, modification, or inspection period does not exceed ninety days.
C.R.S. § 39-26-714 Vending machines - definitions
39-26-714. Vending machines - definitions. (1) (a) Every vendor selling individual items of personal property through vending machines shall pay a sales tax pursuant to section 39-26-106 (2)(b) on the personal property sold in excess of fifteen cents through the vending machines unless the sale is otherwise exempt under the provisions of this part 7.
(b) To be eligible for the exemption provided for in this subsection (1), each vendor shall:
(I) Be licensed under section 39-26-103;
(II) Maintain a record of the identification number, ownership, location, and disposition of every vending machine used by the vendor in his or her operation as a vendor;
(III) Within sixty days after commencing business as such vendor, submit to the department of revenue an accurate list containing the information required under subparagraph (II) of this paragraph (b) and submit such list annually thereafter on January 1, commencing in 1971;
(IV) Make application to the department of revenue for identification numbers to be affixed to every such vending machine, in accordance with rules promulgated by the executive director of the department of revenue;
(V) Remit a fee of ten cents per machine with the application submitted under subparagraph (IV) of this paragraph (b), to defray the expenses of the department of revenue in furnishing the identification numbers; except that the executive director of the department of revenue by rule or as otherwise provided by law may reduce the amount of the fee if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of the fee is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director by rule or as otherwise provided by law may increase the amount of the fee as provided in section 24-75-402 (4), C.R.S.
(c) Any unregistered vending machine found being used for retail sales at any place in this state without the prescribed identification number affixed thereto may be seized without warrant by the department of revenue, its agents, or employees or by any peace officer when directed or requested by the department. At the time of seizure, written notice of seizure shall be given to the proprietor or person in charge of the business, or to the agents or employees of the proprietor or person in charge of the business, where the vending machine is seized. The department shall also give notice by first-class mail as set forth in section 39-21-105.5 to the person whose name and mailing address appear on the machine. The department shall not be required to seize and confiscate any unregistered vending machine or assess a penalty when there is reason to believe that the owner is not intentionally evading the tax imposed by this article.
(d) In addition to any other penalty provided by law, the department of revenue is authorized to assess and collect a penalty of twenty-five dollars for each unregistered vending machine being operated in this state.
seize and confiscate any unregistered vending machine or assess a penalty when there is reason to believe that the owner is not intentionally evading the tax imposed by this article.
(d) In addition to any other penalty provided by law, the department of revenue is authorized to assess and collect a penalty of twenty-five dollars for each unregistered vending machine being operated in this state.
(e) Upon proof of ownership, the department of revenue shall deliver to the owner any vending machine seized under paragraph (c) of this subsection (1) after payment of the twenty-five-dollar penalty and seizure costs, if the owner is liable therefor, and upon registration of the machine. At the expiration of sixty days after the date of notice, any unregistered vending machine and the contents therein still in the possession of the department may be sold at public sale to the highest bidder, but, prior to any such sale, ten days' notice of the sale shall be given by first-class mail as set forth in section 39-21-105.5 to those entitled to notice under paragraph (c) of this subsection (1).
(2) On and after January 1, 2000, all sales and purchases of food, as defined in section 39-26-102 (4.5), by or through vending machines shall be exempt from taxation under the provisions of part 1 of this article; except that, on and after May 1, 2010, sales and purchases of candy and soft drinks by or through vending machines shall be subject to state sales taxation. Absent an express provision in the contract to the contrary, any vending machine contract that references the price at which products shall be sold from a vending machine shall be interpreted to include any applicable sales tax as an addition to the referenced price.
(3) On and after January 1, 2000, the storage, use, or consumption of food, as defined in section 39-26-102 (4.5), purchased by or through vending machines shall be exempt from taxation under the provisions of part 2 of this article; except that, on and after May 1, 2010, the storage, use, or consumption of candy and soft drinks purchased by or through vending machines shall be subject to state use taxation.
(4) For the purposes of this section:
(a) "Candy" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruit, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces. "Candy" shall not include any preparation containing flour and shall require no refrigeration.
(b) "Soft drinks" means nonalcoholic beverages that contain natural or artificial sweeteners. "Soft drinks" do not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or greater than fifty percent of vegetable or fruit juice by volume.
(5) The department of revenue shall promulgate rules, in accordance with article 4 of title 24, C.R.S., to provide a means by which a person who sells candy or soft drinks purchased by and through vending machines may, if necessary, reasonably estimate the amount of sales taxes due on such candy and soft drinks. For any return made prior to August 1, 2010, a person who sells candy or soft drinks at retail shall not be liable for any interest or other penalty imposed as a result of an error made in connection with the elimination of the exemption from state sales tax for sales of candy and soft drinks, as defined in subsection (4) of this section, by House Bill 10-1191, enacted in 2010.
C.R.S. § 39-26-715 Fuel and oil - definitions
39-26-715. Fuel and oil - definitions. (1) (a) The following are exempt from taxation under the provisions of part 1 of this article:
(I) All commodities that are taxed under the provisions of article 27 of this title; and all commodities that are taxed under said provisions and the tax is refunded; and all sales and purchases of aviation fuel upon which no Colorado sales tax was in fact collected and retained prior to July 1, 1963; except that aviation fuel used in turbo-propeller or jet engine aircraft and upon which a sales tax was collected prior to January 1, 1989, shall not be exempt.
(II) On and after June 10, 2016, all sales and purchases of electricity, coal, wood, gas, fuel oil, or coke sold for residential use. Residential use is presumed when a utility company charges a residential utility rate and such utility company may conclusively rely on such presumption. For purposes of this subparagraph (II):
(A) "Gas" includes natural, manufactured, and liquefied petroleum gas.
(B) "Residence" means a separate dwelling in a multiunit apartment, condominium, townhouse, or mobile trailer home park, or a separate single-unit dwelling, that is either billed under a single utility meter or a master utility meter and either charged at a residential, commercial, or other nonresidential utility rate. "Residence" includes minor buildings associated with the residence that are billed under the residential utility meter, such as a shed, garage, or barn.
(C) "Residential use" means the use of electricity, coal, wood, gas, fuel oil, or coke for domestic purposes, including powering lights, refrigerators, stoves, water heaters, space heaters, air conditioners, or other domestic items that require power or fuel in a residence.
(III) All sales of dyed diesel.
(b) Based upon reports submitted by retailers pursuant to the provisions of part 1 of this article, the department of revenue shall compile a monthly report showing the amount of sales taxes collected on aviation fuel used in turbo-propeller or jet engine aircraft during the previous month by each retailer. The monthly report shall be transmitted to the aeronautics division created in section 43-10-103, C.R.S., for use by the division in distributing moneys in the aviation fund in accordance with section 43-10-110, C.R.S.
(2) The following are exempt from taxation under the provisions of part 2 of this article 26:
(a) (I) The storage, use, or consumption of gasoline that is taxed under the provisions of part 1 of article 27 of this title 39 and all gasoline that is taxed under said provisions and the tax on which is refunded; except that aviation fuel used in turbo-propeller or jet engine aircraft and upon which a tax was collected pursuant to the provisions of part 2 of this article 26 prior to January 1, 1989, shall not be exempt.
(II) Based upon reports submitted by users or consumers pursuant to the provisions of part 2 of this article, the department of revenue shall compile a monthly report showing the amount of use taxes collected on aviation fuel used in turbo-propeller or jet engine aircraft during the previous month by each user or consumer. The monthly report shall be transmitted to the aeronautics division created in section 43-10-103, C.R.S., for use by the division in distributing moneys in the aviation fund in accordance with section 43-10-110, C.R.S.
(b) (I) The storage, use, or consumption of electricity, coal, coke, fuel oil, steam, nuclear fuel, or gas for use in processing, manufacturing, mining, refining, irrigation, building construction, telegraph, telephone, and radio communication, street and railroad transportation services, and all industrial uses.
(II) and (III) Repealed.
aviation fund in accordance with section 43-10-110, C.R.S.
(b) (I) The storage, use, or consumption of electricity, coal, coke, fuel oil, steam, nuclear fuel, or gas for use in processing, manufacturing, mining, refining, irrigation, building construction, telegraph, telephone, and radio communication, street and railroad transportation services, and all industrial uses.
(II) and (III) Repealed.
(c) On and after June 10, 2016, the storage, use, or consumption of electricity, coal, wood, gas, fuel oil, or coke sold for residential use. Residential use is presumed when a utility company charges a residential utility rate and such utility company may conclusively rely on such presumption. For purposes of this paragraph (c):
(I) "Gas" includes natural, manufactured, and liquefied petroleum gas.
(II) "Residence" means a separate dwelling in a multiunit apartment, condominium, townhouse, or mobile trailer home park, or a separate single-unit dwelling, that is either billed under a single utility meter or a master utility meter and either charged at a residential, commercial, or other nonresidential utility rate. "Residence" includes minor buildings associated with the residence that are billed under the residential utility meter, such as a shed, garage, or barn.
(III) "Residential use" means the use of electricity, coal, wood, gas, fuel oil, or coke for domestic purposes, including powering lights, refrigerators, stoves, water heaters, space heaters, air conditioners, or other domestic items that require power or fuel in a residence.
(d) The storage, use, or consumption of dyed diesel.
(3) In any case in which a sales tax has been imposed under part 1 of this article on lubricating oil used other than in motor vehicles, the purchaser shall be entitled to a refund equal to the amount of the state sales tax paid on that portion of the sale price that is attributable to the federal excise tax imposed on the sale of such lubricating oil. In any case in which a use tax has been imposed under part 2 of this article on lubricating oil used other than in motor vehicles, the payer of such tax is entitled to a refund equal to the amount of such use tax paid on that portion of the amount upon which the use tax was imposed that is attributable to the federal excise tax paid on such lubricating oil. The refund allowed under this subsection (3) shall be paid by the executive director of the department of revenue upon receiving evidence that the purchaser has received under section 6424 of the federal "Internal Revenue Code of 1986", as amended, a refund of the federal excise tax paid on the sale of such lubricating oil. The claim for a refund shall be made upon such forms as shall be prescribed and furnished by the executive director, which forms shall contain such information as the executive director may prescribe.
(4) As used in this section, "dyed diesel" has the same meaning as set forth in section 39-27-101 (8).
C.R.S. § 39-26-716 Agriculture and livestock - special fuels - definitions
39-26-716. Agriculture and livestock - special fuels - definitions. (1) For purposes of this section, unless the context otherwise requires:
(a) Repealed.
(b) "Attachments" means any equipment or machinery added to an exempt farm tractor or implement of husbandry that aids or enhances the performance of such tractor or implement.
(c) "Dairy equipment" means any item that is used at a farm dairy in connection with the production of raw milk and not at a commercial dairy in connection with the production of pasteurized, separated milk products for retail sale, including, without limitation, milking claws, shells, inflators, pulsators, meters, cow identification systems, transponders, automatic takeoffs, piping, receiver jars, pumps, filter assemblies, milk containment tanks, cooling compressors, wash vats, clean in place assemblies, wash lines, wash control units, pulsator controls, milking system controls, programmable logical control systems, vacuum pumps, vacuum distribution tanks, backflush and related valves, rubber and similar hoses, rubber and similar gaskets, and any other similar or related item used in any farm dairy facility or farm dairy operation or in the production of raw milk, regardless of whether or not the item has become a fixture. To the extent the farm dairy is also involved in the production of pasteurized, separated milk products for retail sale, only the equipment used exclusively in the production of raw milk constitutes dairy equipment for purposes of this section.
(d) "Farm equipment" means any farm tractor, as defined in section 42-1-102 (33), any implement of husbandry, as defined in section 42-1-102 (44), and irrigation equipment having a per unit purchase price of at least one thousand dollars. "Farm equipment" also includes, regardless of purchase price, attachments and baling wire, binders twine, and surface wrap used primarily and directly in any farm operation. On and after July 1, 2000, "farm equipment" also includes, regardless of purchase price, parts that are used in the repair or maintenance of the farm equipment described in this subsection (1)(d), all shipping pallets, crates, or aids paid for by a farm operation, and aircraft designed or adapted to undertake agricultural applications. On and after July 1, 2001, "farm equipment" also includes, regardless of purchase price, dairy equipment. On and after September 1, 2019, "farm equipment" also includes, regardless of purchase price, any visual, electronic identification, or matched pair ear tags and electronic identification readers used to scan ear tags that are used by a farm operation to identify or track food animals, including animals used for food or in the production of food. Except for shipping pallets, crates, or aids used in the transfer or shipping of agricultural products, "farm equipment" does not include:
(I) Vehicles subject to the registration requirements of section 42-3-103, C.R.S., regardless of the purpose for which such vehicles are used;
(II) Machinery, equipment, materials, and supplies used in a manner that is incidental to a farm operation;
(III) Maintenance and janitorial equipment and supplies; and
(IV) Tangible personal property used in any activity other than farming, such as office equipment and supplies and equipment and supplies used in the sale or distribution of farm products, research, or transportation.
(e) "Farm operation" means the production of any of the following products for profit, including, but not limited to, a business that hires out to produce or harvest such products:
(I) Agricultural, viticultural, fruit, and vegetable products;
(II) Livestock, as defined in section 39-26-102 (5.5);
(III) Milk;
(IV) Honey; and
(V) Poultry and eggs.
(2) and (3) Repealed.
(4) The following are exempt from taxation under the provisions of parts 1 and 2 of this article 26:
profit, including, but not limited to, a business that hires out to produce or harvest such products:
(I) Agricultural, viticultural, fruit, and vegetable products;
(II) Livestock, as defined in section 39-26-102 (5.5);
(III) Milk;
(IV) Honey; and
(V) Poultry and eggs.
(2) and (3) Repealed.
(4) The following are exempt from taxation under the provisions of parts 1 and 2 of this article 26:
(a) All sales and purchases of livestock, all sales and purchases of live fish for stocking purposes, and all farm close-out sales and the storage, use, or consumption of such property;
(b) All sales and purchases of feed for livestock, all sales and purchases of seeds, and all sales and purchases of orchard trees and the storage, use, or consumption of such property;
(c) All sales and purchases of straw and other bedding for use in the care of livestock and the storage, use, or consumption of straw and other bedding for use in the care of livestock;
(d) The sale of special fuel, as defined in section 39-27-101 (29), used for the operation of farm vehicles when such vehicles are being used on farms and ranches and the storage, use, or consumption of such special fuel;
(e) All sales and purchases of farm equipment and the storage, use, or consumption of farm equipment; and
(f) (I) Any farm equipment under lease or contract, if the fair market value of the equipment is at least one thousand dollars and the equipment is rented or leased for use primarily and directly in any farm operation.
(II) Unless the department of revenue determines pursuant to section 39-26-730 (2) that the affidavit can be consolidated with another form or eliminated, the lessor or seller of such farm equipment shall obtain a signed affidavit from the lessee, renter, or purchaser affirming that the farm equipment will be used primarily and directly in a farm operation.
(5) (Deleted by amendment, L. 2011, (HB 11-1005), ch. 194, p. 755, § 3, effective July 1, 2011.)
C.R.S. § 39-26-717 Drugs and medical and therapeutic devices - legislative declaration - definitions - repeal
39-26-717. Drugs and medical and therapeutic devices - legislative declaration - definitions - repeal. (1) As used in this section, unless the context otherwise requires:
(a) (I) "Durable medical equipment" means equipment, including repair and replacement parts for such equipment, dispensed pursuant to a prescription order, that:
(A) Can withstand repeated use;
(B) Is primarily and customarily used to serve a medical purpose;
(C) Is generally not useful to a person in the absence of illness or injury; and
(D) Is not worn in or on the body.
(II) "Durable medical equipment" includes hospital beds, intravenous poles and pumps, trapeze bars, toileting aids, bath and shower aids, standing aids, adaptive car seats, communication devices, and any related accessories for such items.
(a.5) "Incontinence products and diapers" means absorbent cloth or disposable products worn by humans who are incapable of, or have difficulty, controlling their bladder or bowel movements.
(b) (I) "Mobility enhancing equipment" means equipment, including repair and replacement parts for such equipment, dispensed pursuant to a prescription order, that:
(A) Is primarily and customarily used to provide or increase the ability to move from one place to another;
(B) Is appropriate for use in a home, in a person's community, or in a motor vehicle;
(C) Is not generally used by persons with normal mobility; and
(D) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
(II) "Mobility enhancing equipment" includes wheelchairs and wheelchair components or accessories, walking aids such as crutches, canes, or walkers, grab bars, trapeze bars, lift chairs, patient lifts, motorized carts, scooters, controls that are installed on motor vehicles, and any related accessories for such items.
(b.5) "Period products" means consumer products used to manage menstruation.
(c) "Practitioner" has the same meaning as set forth in section 12-280-103 (40).
(d) "Prescription" has the same meaning as set forth in section 12-280-103 (41).
(e) For purposes of subsections (1)(a)(I), (1)(b)(I), (2)(g), (2)(h), and (2)(i) of this section, "prescription order" means any order for a prescription that:
(I) (A) Is in writing, dated, and signed by a practitioner; or
(B) Is given orally by a practitioner and immediately reduced to writing by the pharmacist or pharmacy intern, or by a representative of a business licensed to sell items described in subsection (2)(g), (2)(h), (2)(i), or (2)(j) of this section so long as such prescription order is also followed by an electronic submission of the prescription order to the business; and
(II) Specifying the name and address of the person for whom an item described in subsection (2)(g), (2)(h), (2)(i), or (2)(j) of this section is prescribed and directions, if any, to be included with such item.
(2) The following are exempt from taxation under part 1 of this article 26:
(a) All sales of prescription drugs dispensed in accordance with a prescription by a practitioner or furnished by a practitioner as part of professional services provided to a patient or client;
(b) All sales of insulin in all its forms dispensed pursuant to the direction of a practitioner;
(c) All sales of glucose useable for treatment of insulin reactions;
(d) All sales of urine- and blood-testing kits and materials;
(e) All sales of insulin measuring and injecting devices, including hypodermic syringes and needles;
(f) All sales of prosthetic devices;
(g) All sales of oxygen delivery equipment and disposable medical supplies related to oxygen delivery dispensed pursuant to a prescription order;
(h) All sales of medical, feeding, and disposable supplies, including any related accessories, for incontinence, infusion, enteral nutrition, ostomy, urology, diabetic care, and wound care dispensed pursuant to a prescription order;
prosthetic devices;
(g) All sales of oxygen delivery equipment and disposable medical supplies related to oxygen delivery dispensed pursuant to a prescription order;
(h) All sales of medical, feeding, and disposable supplies, including any related accessories, for incontinence, infusion, enteral nutrition, ostomy, urology, diabetic care, and wound care dispensed pursuant to a prescription order;
(i) All sales of equipment and related accessories for sleep therapy, inhalation therapy, and electrotherapy dispensed pursuant to a prescription order;
(j) All sales of durable medical equipment and mobility enhancing equipment;
(k) All sales of nonprescription drugs or materials when furnished by a practitioner as part of professional services provided to a patient;
(l) All sales of corrective eyeglasses, contact lenses, or hearing aids; and
(m) (I) All sales of period products purchased on and after January 1, 2023.
(II) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:
(A) The general legislative purpose of the exemption allowed by this subsection (2)(m) is to provide tax relief for certain individuals;
(B) The specific legislative purpose of the exemption allowed by this subsection (2)(m) is to increase the affordability of period products and to redress the inequitable burden that the imposition of sales tax places on millions of women in Colorado for whom such products are essential; and
(C) In order to allow the general assembly and the state auditor to measure the effectiveness of the exemption, the state auditor shall identify available data sources and estimate the savings that the exemption provides to taxpayers in Colorado for whom period products are essential during the state auditor's evaluation of the exemption pursuant to section 39-21-305.
(III) Notwithstanding section 39-21-304 (4), the exemption in this subsection (2)(m) continues indefinitely.
(n) (I) All sales of incontinence products and diapers purchased on and after January 1, 2023.
(II) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:
(A) The general legislative purpose of the exemption allowed by this subsection (2)(n) is to provide tax relief for certain individuals;
(B) The specific legislative purpose of the exemption allowed by this subsection (2)(n) is to increase the affordability of incontinence products and diapers and to redress the inequitable burden that the imposition of sales tax places on millions of parents, individuals caring for infants and young children, and other users of incontinence products in Colorado for whom such products are essential; and
(C) In order to allow the general assembly and the state auditor to measure the effectiveness of the credit, the state auditor shall identify available data sources and estimate the savings the exemption provides to taxpayers in Colorado for whom incontinence products and diapers are essential during the state auditor's evaluation of the exemption pursuant to section 39-21-305.
(III) Notwithstanding section 39-21-304 (4), the exemption in this subsection (2)(n) continues indefinitely.
(3) The storage, use, or consumption of any item that is exempt from sales tax by operation of subsection (2) of this section is exempt from taxation under the provisions of part 2 of this article 26.
C.R.S. § 39-26-718 Charitable organizations - association or organization of parents and teachers of public school students
39-26-718. Charitable organizations - association or organization of parents and teachers of public school students. (1) The following shall be exempt from taxation under the provisions of part 1 of this article 26:
(a) All sales made to charitable organizations, in the conduct of their regular charitable functions and activities;
(b) (I) All sales by a charitable organization of tangible personal property, commodities, or services otherwise subject to tax under this article 26 if:
(A) The net proceeds from sales by the charitable organizations of tangible personal property, commodities, or services otherwise subject to tax under this article 26 do not exceed forty-five thousand dollars during the preceding calendar year; and
(B) The funds raised by the charitable organization through these sales are retained by the organization to be used in the course of the organization's charitable service.
(II) The exemption in this subsection (1)(b) shall not apply to sales made by a charitable organization on and after the date that the net proceeds from sales by the charitable organization of tangible personal property, commodities, or services otherwise subject to tax under this article 26 exceeds forty-five thousand dollars during the current calendar year.
(c) On or after September 1, 2008, a sale by an association or organization of parents and teachers of public school students that is a charitable organization, if the association or organization uses the funds raised through the sale for the benefit of a public school or an organized public school activity or to pay the reasonable expenses of the association or organization.
(2) The storage, use, or consumption of any item that is exempt from sales tax by operation of subsection (1)(b) or (1)(c) of this section is exempt from taxation under the provisions of part 2 of this article 26.
C.R.S. § 39-26-719 Motor vehicles - repeal
39-26-719. Motor vehicles - repeal. (1) (a) Prior to January 1, 2025, there shall be exempt from taxation under the provisions of part 1 of this article 26 the sale of any motor vehicle, power source for any motor vehicle, or parts used for converting the power source for any motor vehicle, if:
(I) Repealed.
(II) For sales occurring on or after July 1, 2014:
(A) The gross vehicle weight rating of the motor vehicle is greater than twenty-six thousand pounds and if the power source or parts used for converting the power source are certified by the United States environmental protection agency as provided in the federal heavy-duty national program that includes new greenhouse gas emissions standards as established by the United States environmental protection agency; or
(B) The gross vehicle weight rating of the motor vehicle is greater than ten thousand pounds and if the motor vehicle, power source, or parts used for converting the power source meets the definition of a category 4, 4 A, 4 B, 4 C, 7, or 7 A truck as defined in section 39-22-516.8.
(b) For purposes of this subsection (1), unless the context otherwise requires:
(I) "Motor vehicle" means any self-propelled vehicle required to be licensed or subject to licensing for operation upon the highways of this state, including a vehicle that uses a hybrid propulsion system.
(II) "Parts used for converting" shall mean the wiring, fuel lines, engine coolant system, fuel storage containers, fuel control system, and other components associated with reducing the emissions characteristics of an engine or motor.
(III) "Power source" means the engine or motor and associated wiring, fuel lines, engine coolant system, fuel storage containers, and miscellaneous components.
(c) This subsection (1) is repealed, effective December 31, 2028.
(2) The following shall be exempt from taxation under the provisions of part 2 of this article 26:
(a) The storage, use, or consumption of a motor vehicle, if the owner is or was, at the time of purchase, a nonresident of Colorado and the owner purchased the vehicle outside of this state for use outside this state and actually so used it for a substantial and primary purpose for which it was acquired and the owner registered, titled, and licensed said motor vehicle outside of Colorado.
(b) (I) Prior to January 1, 2025, the storage, use, or consumption of a motor vehicle, power source for a motor vehicle, and parts used for converting the power source of a motor vehicle, if:
(A) For sales occurring on or before June 30, 2014, the gross vehicle weight rating of the motor vehicle is greater than ten thousand pounds and if the motor vehicle, power source, or parts used for converting the power source are certified by the United States environmental protection agency or any state as provided in the federal "Clean Air Act" as meeting an emission standard equal to or more stringent than the low-emitting vehicle emission standard;
(B) For sales occurring on or after July 1, 2014, the gross vehicle weight rating of the motor vehicle is greater than twenty-six thousand pounds and if the power source or parts used for converting the power source are certified by the United States environmental protection agency as provided in the federal heavy-duty national program that includes new greenhouse gas emissions standards as established by the United States environmental protection agency; or
(C) For sales occurring on or after July 1, 2014, the gross vehicle weight rating of the motor vehicle is greater than ten thousand pounds and if the motor vehicle, power source, or parts used for converting the power source meets the definition of a category 4, 4 A, 4 B, 4 C, 7, or 7 A truck as defined in section 39-22-516.8.
(II) For purposes of this paragraph (b), unless the context otherwise requires:
ales occurring on or after July 1, 2014, the gross vehicle weight rating of the motor vehicle is greater than ten thousand pounds and if the motor vehicle, power source, or parts used for converting the power source meets the definition of a category 4, 4 A, 4 B, 4 C, 7, or 7 A truck as defined in section 39-22-516.8.
(II) For purposes of this paragraph (b), unless the context otherwise requires:
(A) "Motor vehicle" means any self-propelled vehicle required to be licensed or subject to licensing for operation upon the highways of this state, including a vehicle that uses a hybrid propulsion system.
(B) "Parts used for converting" shall mean the wiring, fuel lines, engine coolant system, fuel storage containers, fuel control system, and other components associated with reducing the emissions characteristics of an engine or motor.
(C) "Power source" means the engine or motor and associated wiring, fuel lines, engine coolant system, fuel storage containers, and miscellaneous components.
(III) This subsection (2)(b) is repealed, effective December 31, 2028.
C.R.S. § 39-26-720 Bingo equipment
39-26-720. Bingo equipment. (1) All sales of equipment, as defined in section 24-21-602 (16), to a bingo-raffle licensee, as defined in section 24-21-602 (3), are exempt from taxation under part 1 of this article 26.
(2) The storage, use, or consumption of equipment, as defined in section 24-21-602 (16), by a bingo-raffle licensee, as defined in section 24-21-602 (3), is exempt from taxation under part 2 of this article 26.
C.R.S. § 39-26-721 Manufactured homes and tiny homes
39-26-721. Manufactured homes and tiny homes. (1) Forty-eight percent of the purchase price of a manufactured home, as defined in section 42-1-102 (48.8), is exempt from taxation under part 1 of this article 26; except that the entire purchase price in any subsequent sale of such a manufactured home, after it has been once subject to the payment of sales tax by virtue of section 39-26-113, is exempt from taxation under part 1 of this article 26.
(2) The storage, use, or consumption of a manufactured home, as defined in section 42-1-102 (48.8), after the manufactured home has been once subject to the payment of use tax by virtue of section 39-26-208, is exempt from taxation under part 2 of this article 26.
(3) (a) Prior to January 1, 2025, the sale, storage, usage, or consumption of a manufactured home, as defined in section 39-1-102 (7.8), or a tiny home, as defined in section 24-32-3302 (35), is exempt from taxation under parts 1 and 2 of this article 26.
(b) On and after January 1, 2025, the sale, storage, usage, or consumption of a manufactured home, as defined in section 39-1-102 (7.8), a modular home, as defined in section 39-1-102 (8.3), a tiny home, as defined in section 24-32-3302 (35), or any closed panel system utilized in construction of a factory-built residential structure, as defined in section 24-32-3302 (10), is exempt from taxation under parts 1 and 2 of this article 26.
C.R.S. § 39-26-722 Cleanrooms - definitions - repeal
39-26-722. Cleanrooms - definitions - repeal. (Repealed)
C.R.S. § 39-26-723 Colorado wood products - repeal
39-26-723. Colorado wood products - repeal. (1) For fiscal years commencing on or after July 1, 2008, but prior to the fiscal year commencing on July 1, 2020, and for fiscal years commencing on or after July 1, 2021, but prior to the fiscal year commencing on July 1, 2026, all sales, storage, and use of wood from salvaged trees killed or infested in Colorado by mountain pine beetles or spruce beetles, including but not limited to products such as lumber, furniture built from the salvaged trees, and wood chips or wood pellets generated from the salvaged trees, are exempt from taxation under the provisions of parts 1 and 2 of this article 26.
(2) For purposes of the exemption specified in subsection (1) of this section, unless the department of revenue determines pursuant to section 39-26-730 (2) that the form can be consolidated with another form or eliminated, a wholesaler shall certify on a form prescribed by the department of revenue that a product is from salvaged trees killed or infested in Colorado by mountain pine beetles or spruce beetles.
(3) This section is repealed, effective July 1, 2027.
C.R.S. § 39-26-724 Components used to produce energy from a renewable energy source - definitions
39-26-724. Components used to produce energy from a renewable energy source - definitions. (1) (a) For fiscal years commencing on or after July 1, 2006, all sales, storage, and use of components used in the production of alternating current electricity from a renewable energy source, including but not limited to wind, shall be exempt from taxation under parts 1 and 2 of this article.
(b) and (c) Repealed.
(2) As used in this section:
(a) and (a.5) Repealed.
(b) (I) "Components used in the production of alternating current electricity from a renewable energy source" shall include, but shall not be limited to, wind turbines, rotors and blades, solar modules, trackers, generating equipment, supporting structures or racks, inverters, towers and foundations, balance of system components such as wiring, control systems, switchgears, and generator step-up transformers, and concentrating solar power components that include, but are not limited to, mirrors, plumbing, and heat exchangers.
(II) "Components used in the production of alternating current electricity from a renewable energy source" shall not include any components beyond the point of generator step-up transformers located at the production site, labor, energy storage devices, or remote monitoring systems.
(c) Repealed.
(3) The purpose of the exemption authorized in this section is to create additional incentives for developing renewable energy projects not already created by other state or federal law.
C.R.S. § 39-26-725 Sales related to a school - definitions
39-26-725. Sales related to a school - definitions. (1) As used in this section, unless the context otherwise requires:
(a) "Parent" means a parent of a student as defined in paragraph (d) of this subsection (1).
(b) "Sale that benefits a Colorado school" means a sale of a commodity or service from which all proceeds of the sale, less only the actual cost of the commodity or service to the person or entity described in subsection (2) of this section, are donated to a school or a school-approved student organization.
(c) "School" means a public or nonpublic school for students in kindergarten through twelfth grade or any portion thereof.
(d) "Student" means any person enrolled in a school as defined in paragraph (c) of this subsection (1).
(2) On or after September 1, 2008, a sale that benefits a Colorado school shall be exempt from taxation under the provisions of part 1 of this article, if the sale is made by any of the following:
(a) A school;
(b) An association or organization of parents and school teachers;
(c) A booster club or other club, group, or organization whose primary purpose is to support a school activity; or
(d) A school class or student club, group, or organization.
(3) Nothing in this section shall be construed as creating an exemption, or otherwise affecting an existing exemption, for a sale to a person or entity described in subsection (2) of this section.
(4) The storage, use, or consumption of any item that is exempt from sales tax by operation of subsection (2) of this section is exempt from taxation under the provisions of part 2 of this article 26.
C.R.S. § 39-26-726 Medical marijuana - debilitating conditions and ability to purchase
39-26-726. Medical marijuana - debilitating conditions and ability to purchase. All sales of medical marijuana to a patient who is determined to be indigent for purposes of waiving the fee required by section 25-1.5-106, C.R.S., shall be exempt from taxation under part 1 of this article. If the patient is determined to be indigent the state health agency shall mark his or her registry identification card as such and the patient shall present the card to the licensed medical marijuana center to receive the tax exemption.
C.R.S. § 39-26-727 Tribal exemption - motor vehicles - partial interest - definition - legislative declaration
39-26-727. Tribal exemption - motor vehicles - partial interest - definition - legislative declaration. (1) The general assembly hereby declares that on-reservation sales to the Ute Indian Tribes and tribal members are exempt from state and local sales and use tax under federal law and that the purpose of the tax exemption created in this section is to:
(a) Codify this exemption so that it generally reflects the department of revenue's interpretation of current law;
(b) Ensure consistent application of the state tax and applicable Indian taxation rules;
(c) Provide guidance for tribes, tribal members, vendors, and the department of revenue; and
(d) Continue the department of revenue's practice of not requiring the delivery of a motor vehicle for the exemption to apply.
(2) As used in this section, with respect to a particular sale to a tribe or tribal member, "reservation" means either the Southern Ute Indian Reservation or the Reservation of the Ute Mountain Ute Tribe.
(3) (a) All sales of tangible personal property or services to the Southern Ute Indian Tribe, Ute Mountain Ute Tribe, or an enrolled member of either tribe, are exempt from taxation under part 1 of this article if the vendor is located:
(I) On a reservation; or
(II) Outside of a reservation but the property or service is delivered by the vendor and received by the tribe or the tribal member on a reservation.
(b) All sales of motor vehicles to the Southern Ute Indian Tribe or Ute Mountain Ute Tribe, or to an enrolled member of either tribe who resides on a reservation, are exempt from taxation under part 1 of this article if the motor vehicle is to be registered to an address on a reservation. A vendor may reasonably rely on a tribal member's certification of his or her enrolled membership status and residence.
(4) The storage, use, or consumption of tangible personal property or a service on a reservation that is exempt from sales tax pursuant to subsection (3) of this section is exempt from the use tax levied pursuant to part 2 of this article; except that this use tax exemption only applies to a motor vehicle that is registered to an address on a reservation.
(5) If the Southern Ute Indian Tribe, Ute Mountain Ute Tribe, or an enrolled member of either tribe has a partial or undivided interest in any type of legal entity, the exemptions created in this section apply to a sale of goods or services to such entity in proportion to the interest. To be eligible for the exemption, the tribe or tribal member must file a declaration with the department of revenue that identifies the entity, each tribe and tribal member that has an interest in the entity, and the amount of each interest.
C.R.S. § 39-26-728 Property for use in space flight - definitions
39-26-728. Property for use in space flight - definitions. (1) For the state fiscal years commencing on or after July 1, 2014, all sales, storage, and use of qualified property for use in space flight is exempt from taxation under parts 1 and 2 of this article.
(2) As used in this section:
(a) "Qualified property for use in space flight" means any of the following:
(I) A space vehicle and any component thereof;
(II) Tangible personal property to be placed or used aboard a space vehicle, regardless of whether such personal property is to be ultimately returned to the state for subsequent use, storage, or other consumption; and
(III) Fuel of a quality that is not adaptable for use in an ordinary motor vehicle and that is produced, sold, and used exclusively for space flight.
(b) "Space flight" means any flight designed for suborbital, orbital, or interplanetary travel by a space vehicle.
(c) "Space vehicle" means any tangible personal property that has space flight capability and is intended for space flight and includes, but is not limited to, an orbital space facility, space propulsion system, satellite, or space station of any kind.
(3) The tax exemption established by this section may not be denied to a taxpayer because of a failure, postponement, destruction, or cancellation of a launch of a space vehicle.
(4) The executive director of the department of revenue shall annually provide information to the finance committees of the house of representatives and the senate, or any successor committees, on the number of exemptions claimed pursuant to this section. Such information may be incorporated into an existing report provided on an annual basis by the executive director to the committees.
C.R.S. § 39-26-729 Retail sales of marijuana
39-26-729. Retail sales of marijuana. (1) (a) Except as otherwise provided in subsection (1)(b) of this section, on and after July 1, 2017, all retail sales of marijuana upon which the retail marijuana sales tax is imposed pursuant to section 39-28.8-202 are exempt from taxation under part 1 of this article 26 by the state or by any special district or other limited purpose governmental entity that was not levying sales tax on retail sales of marijuana under part 1 of this article 26 before July 1, 2017. Notwithstanding any other law to the contrary, any special district or other limited purpose governmental entity that was levying sales tax on retail sales of marijuana under part 1 of this article 26 before July 1, 2017, retains its authority to continue levying sales tax upon retail sales of marijuana under this article 26.
(b) Any metropolitan district that levies a general uniform sales tax as authorized by section 32-1-1106 (1), health assurance district that levies a general uniform sales tax as authorized by section 32-19-112 (1), or health service district that levies a general uniform sales tax as authorized by section 32-19-112 (1) may levy its general uniform sales tax on retail sales of marijuana upon which the retail marijuana sales tax is imposed pursuant to section 39-28.8-202 regardless of whether or not the district was levying any sales tax on such sales before July 1, 2017.
(2) The governing body of any special district or limited purpose governmental entity that was levying sales tax upon retail marijuana sales before July 1, 2017, and the governing body of any metropolitan district, health assurance district, or health service district that is authorized by subsection (1)(b) of this section to levy a general uniform sales tax on retail marijuana sales shall determine whether the levying of such sales tax complies with the Colorado constitution and applicable decisions of the Colorado supreme court and Colorado court of appeals and, if the governing body of any such special district or limited purpose governmental entity determines that additional voter approval is required to levy sales tax upon retail sales of marijuana, the special district or limited purpose governmental entity shall not resume levying sales tax upon such sales until voter approval is obtained.
(3) The storage, use, or consumption of any retail marijuana that is exempt from sales tax by operation of subsection (1) of this section is exempt from taxation under the provisions of part 2 of this article 26.
C.R.S. § 39-26-730 Sales and use tax exemption forms - simplification - legislative declaration
39-26-730. Sales and use tax exemption forms - simplification - legislative declaration. (1) The general assembly hereby finds and declares that:
(a) In many cases, a person who wishes to establish the right to obtain an exemption allowed by this part 7 is required to complete a form created by the department of revenue which, depending on which exemption is sought, may be described as an affidavit, application, certificate, certification, declaration, or statement; and
(b) The burdens of establishing the right to an exemption allowed by this part 7 that are imposed on persons making tax-exempt purchases should be minimized to the extent feasible without impairing the proper administration of the exemptions.
(2) The department of revenue shall examine its sales and use tax exemption forms and its requirements relating to their use and, to the extent feasible without impairing the proper administration of the exemptions, simplify the forms, which simplification may include elimination of certain forms or consolidation of forms, and form-related requirements for persons making tax-exempt purchases as allowed by this article 26. The department shall complete the initial simplification on or before July 1, 2023, and shall continue to pursue simplification thereafter as the provisions of this part 7 or other relevant circumstances change.
C.R.S. § 39-26-731 Eligible decarbonizing building materials - tax preference performance statement - legislative declaration - definition - repeal
39-26-731. Eligible decarbonizing building materials - tax preference performance statement - legislative declaration - definition - repeal. (1) (a) The general assembly hereby finds and declares that:
(I) The general assembly has committed to reduce greenhouse gases through numerous policy and regulatory measures to meet the goals established in 2019;
(II) Great quantities of emissions are released during the manufacture and transport of building materials used in construction projects;
(III) There is great potential for businesses and individuals in the state to reduce greenhouse gas emissions in construction projects by purchasing and using eligible decarbonizing building materials, which are building materials with a maximum acceptable global warming potential as determined by the office of the state architect;
(IV) Providing a sales and use tax exemption for eligible decarbonizing building materials will encourage businesses and individuals to purchase and use those building materials rather than industry standard materials; and
(V) The purchase and use of eligible decarbonizing building materials will help improve environmental outcomes and accelerate necessary greenhouse gas reductions to protect public health and the environment and conserve a livable climate by incorporating emissions information from throughout the supply chain and product life cycle into building material purchasing and use decisions.
(b) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that the purposes of the tax expenditure created in subsection (3) of this section are to:
(I) Induce certain designated behavior by taxpayers, specifically the purchase and use of eligible decarbonizing building materials; and
(II) Contribute to the state's effort to achieve its climate goals.
(c) The general assembly and the state auditor shall measure the effectiveness of the exemption in achieving the purposes specified in subsection (1)(b) of this section based on the quantity of eligible decarbonizing building materials sold and used in the state. The Colorado energy office and office of the state architect shall provide the state auditor with any available information that would assist the state auditor's measurement.
(2) As used in this section, unless the context otherwise requires, "eligible decarbonizing building materials" means building materials that have a maximum acceptable global warming potential as determined by the office of the state architect pursuant to section 24-92-117. "Eligible decarbonizing building materials" includes:
(a) Asphalt and asphalt mixtures;
(b) Cement and concrete mixtures;
(c) Glass;
(d) Post-tension steel;
(e) Reinforcing steel;
(f) Structural steel; and
(g) Wood structural elements.
(3) On and after July 1, 2024, all sales, storage, and use of eligible decarbonizing building materials that are on the list of eligible materials maintained by the office of the state architect pursuant to section 24-92-117 (7), are exempt from taxation under parts 1 and 2 of this article 26.
(4) By January 1, 2024, the office of the state architect shall provide the list it compiles and maintains pursuant to section 24-92-117 (7) to the department of revenue. Based on the list from the office of the state architect, the department shall create and maintain a database of products, including the manufacturers of the products, that are eligible for the sales and use tax exemption allowed pursuant to this section for use by entities that sell decarbonizing building materials.
(5) This section is repealed, effective July 1, 2034.
C.R.S. § 39-26-732 Heat pump systems - tax preference performance statement - legislative declaration - definitions - repeal
39-26-732. Heat pump systems - tax preference performance statement - legislative declaration - definitions - repeal. (1) (a) The general assembly hereby finds and declares that:
(I) The general assembly has committed to reduce greenhouse gases through numerous policy and regulatory measures to meet the goals established in 2019;
(II) Great quantities of emissions are released in the traditional process of heating and cooling private sector commercial and residential buildings;
(III) There is great potential for businesses and individuals in the state to reduce greenhouse gas emissions generated in the heating and cooling of commercial and residential buildings by installing heat pump systems and heat pump water heaters, which reduce net greenhouse gas emissions;
(IV) Providing a sales and use tax exemption for heat pump systems and heat pump water heaters will encourage businesses and individuals to purchase and use heat pump systems and heat pump water heaters rather than traditional heating and cooling methods; and
(V) The purchase and use of heat pump systems and heat pump water heaters will benefit public health in the heating and cooling of homes and businesses and take advantage of latent heat sources and available renewable power during low demand periods.
(b) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that the purposes of the tax expenditure created in subsection (3) of this section are to:
(I) Induce certain designated behavior by taxpayers, specifically the purchase and use of heat pump systems and heat pump water heaters; and
(II) Contribute to the state's effort to achieve its climate goals.
(c) The general assembly and the state auditor shall measure the effectiveness of the exemption in achieving the purposes specified in subsection (1)(b) of this section based on the number of heat pump systems and heat pump water heaters sold and used in the state. The Colorado energy office shall provide the state auditor with any available information that would assist the state auditor's measurement.
(2) As used in this section, unless the context otherwise requires:
(a) (I) "Air-source heat pump system" means a system that:
(A) Is certified pursuant to the federal environmental protection agency's energy star program;
(B) Has a variable speed compressor;
(C) Is listed in the air-conditioning, heating, and refrigeration institute directory of certified product performance as a matched system; and
(D) Is installed by a licensed contractor, plumber, or employee of a gas utility in accordance with the national electrical code and the manufacturer's specifications.
(II) "Air-source heat pump system" may include an electric resistance heating element or a dual fuel system for supplemental heat so long as:
(A) The air-source heat pump is used as the primary source of a building's heat and is designed to supply at least eighty percent of total annual heating for the building;
(B) The system is capable of distributing produced heat to all conditioned areas of the building;
(C) The dual fuel system has a furnace with an annual fuel utilization efficiency rating of ninety percent or higher;
(D) All piping for a split system is installed by technicians certified to the NITC R78 brazing procedure; and
(E) The system is installed by technicians that are trained on the safe handling of flammable refrigerants.
(III) "Air-source heat pump system" includes mechanical and electrical equipment central to the operation of an air-source heat pump, including an upgraded electrical panel if necessary.
piping for a split system is installed by technicians certified to the NITC R78 brazing procedure; and
(E) The system is installed by technicians that are trained on the safe handling of flammable refrigerants.
(III) "Air-source heat pump system" includes mechanical and electrical equipment central to the operation of an air-source heat pump, including an upgraded electrical panel if necessary.
(b) (I) "Ground-source heat pump system" means a system that:
(A) Is certified to the international organization for standardization's latest standards;
(B) Is installed by a licensed contractor, plumber, or employee of a gas utility in accordance with the national electric code and manufacturer's specifications;
(C) Conforms to all applicable municipal, state, and federal codes, standards, regulations, and certifications;
(D) Has blowers that are variable speed, high-efficiency motors that meet or exceed efficiency levels listed in the national electrical manufacturers association MG1-1993 publication; and
(E) Complies with all state and local drinking water guidelines and regulations and public water system requirements.
(II) "Ground-source heat pump system" may include a dual fuel system so long as:
(A) The ground-source heat pump is used as the primary source of a building's heat and is designed to supply at least eighty percent of total annual heating for the building;
(B) The system is capable of distributing produced heat to all conditioned areas of the building;
(C) The furnace has an annual fuel utilization efficiency rating of ninety percent or higher;
(D) All piping for a split system is installed by technicians certified to the NITC R78 brazing procedure; and
(E) The system is installed by technicians that are trained on the safe handling of flammable refrigerants.
(III) "Ground-source heat pump system" includes mechanical and electrical equipment central to the operation of a ground-source heat pump, including an upgraded electrical panel if necessary.
(IV) "Ground-source heat pump system" may include a heat exchanger for water heating.
(c) "Heat pump system" means an air-source heat pump system, ground-source heat pump system, water-source heat pump system, combined water-source and air-source heat pump system, or variable refrigerant flow heat pump system.
(d) (I) "Heat pump water heater" means an electric water heater that uses heat pump technology to transfer heat from the surrounding air to water in a tank and that is certified pursuant to the federal environmental protection agency's energy star program.
(II) "Heat pump water heater" may include:
(A) An electric resistance heating element; and
(B) Mechanical and electrical equipment central to the operation of a heat pump water heater, including an upgraded electrical panel if necessary.
transfer heat from the surrounding air to water in a tank and that is certified pursuant to the federal environmental protection agency's energy star program.
(II) "Heat pump water heater" may include:
(A) An electric resistance heating element; and
(B) Mechanical and electrical equipment central to the operation of a heat pump water heater, including an upgraded electrical panel if necessary.
(e) (I) "Water-source heat pump system" means a system that:
(A) Is certified to the international organization for standardization's latest standards;
(B) Is installed by a licensed contractor, plumber, or employee of a gas or wastewater utility in accordance with the national electric code and manufacturer's specifications;
(C) Conforms to all applicable municipal, state, and federal codes, standards, regulations, and certifications;
(D) Has blowers that are variable speed, high-efficiency motors that meet or exceed efficiency levels listed in the national electrical manufacturers association MG1-1993 publication; and
(E) Complies with all state and local drinking water guidelines and regulations and public water system and wastewater system requirements.
(II) "Water-source heat pump system" may include a dual fuel system so long as:
(A) The water-source heat pump is used as the primary source of a building's heat and is designed to supply at least eighty percent of the total annual heating for the building;
(B) The system is capable of distributing produced heat to all conditioned areas of the building;
(C) The furnace has an annual fuel utilization efficiency rating of ninety percent or higher;
(D) All piping for a split system is installed by technicians certified to the NITC R78 brazing procedure; and
(E) The system is installed by technicians who are trained in the safe handling of flammable refrigerants.
(III) "Water-source heat pump system" includes mechanical and electrical equipment central to the operation of a water-source heat pump.
(f) (I) "Variable refrigerant flow heat pump system" means a system that:
(A) Is certified to the international organization for standardization's latest standards;
(B) Is installed by a licensed contractor, plumber, or employee of a gas or wastewater utility in accordance with the national electric code and manufacturer's specifications;
(C) Conforms to all applicable municipal, state, and federal codes, standards, regulations, and certifications;
(D) Has blowers that are variable speed, high-efficiency motors that meet or exceed efficiency levels listed in the national electrical manufacturers association MGI-1993 publication; and
(E) Complies with all state and local drinking water guidelines and regulations and public water system and wastewater system requirements.
(II) "Variable refrigerant flow system" may include a dual fuel system so long as:
(A) The variable refrigerant flow system is used as the primary source of a building's heat and is designed to supply at least eighty percent of the total annual heating for the building;
(B) The system is capable of distributing produced heat to all conditioned areas of the building;
(C) The furnace has an annual fuel utilization efficiency rating of ninety percent or higher;
(D) All piping for a split system is installed by technicians certified to the NITC R78 brazing procedure; and
(E) The system is installed by technicians who are trained in the safe handling of flammable refrigerants.
(III) "Variable refrigerant flow system" includes mechanical and electrical equipment central to the operation of a variable refrigerant flow system.
(3) On and after January 1, 2023, but before January 1, 2024, subject to the provisions of subsection (4) of this section, all sales, storage, and use of heat pump systems and heat pump water heaters that are used in commercial or residential buildings are exempt from taxation under parts 1 and 2 of this article 26.
ctrical equipment central to the operation of a variable refrigerant flow system.
(3) On and after January 1, 2023, but before January 1, 2024, subject to the provisions of subsection (4) of this section, all sales, storage, and use of heat pump systems and heat pump water heaters that are used in commercial or residential buildings are exempt from taxation under parts 1 and 2 of this article 26.
(4) (a) (I) To be eligible for the sales and use tax exemption pursuant to this section, the purchaser of a heat pump system or heat pump water heater shall certify, as specified in subsection (4)(b) of this section, that all necessary mechanical, plumbing, and electrical work performed in connection with the installation of a heat pump system or heat pump water heater in a new or existing industrial, commercial, or multifamily residential building containing twenty thousand square feet or more of conditioned floor space will be performed by a contractor on the certified contractor list created pursuant to section 40-3.2-105.6 (3)(a), or by employees of a utility, subject to state licensing requirements and all applicable state and local rules, codes, and standards.
(II) The requirements of this subsection (4)(a) do not apply to the installation of a heat pump system or heat pump water heater that is limited to in-unit work in a multifamily building or unit and that is initiated by the owner or tenant of the multifamily building or unit.
(b) The purchaser shall certify, in a form and manner to be determined by the department of revenue, that the heat pump system or heat pump water heater will be installed in accordance with the provisions of subsection (4)(a) of this section, if applicable.
(5) This section is repealed, effective January 1, 2027.
C.R.S. § 39-26-733 Residential energy storage systems - tax preference performance statement - legislative declaration - definition - repeal
39-26-733. Residential energy storage systems - tax preference performance statement - legislative declaration - definition - repeal. (1) (a) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that the purposes of the tax expenditure created in subsection (3) of this section are to:
(I) Induce certain designated behavior by taxpayers, specifically the purchase and installation of residential energy storage systems; and
(II) Contribute to the state's effort to achieve its climate goals.
(b) The general assembly and the state auditor shall measure the effectiveness of the tax exemption in achieving the purposes specified in subsection (1)(a) of this section based on the number of residential energy storage systems sold and used in the state. The Colorado energy office shall provide the state auditor with any available information that would assist the state auditor's measurement.
(2) As used in this section, unless the context otherwise requires, "energy storage system" means any commercially available, customer-sited system, including batteries and the batteries paired with on-site generation, that is capable of retaining, storing, and delivering energy by chemical, thermal, mechanical, or other means.
(3) On and after January 1, 2023, all sales, storage, and use of energy storage systems that are used in a residential dwelling are exempt from taxation under parts 1 and 2 of this article 26.
(4) This section is repealed, effective January 1, 2033.
C.R.S. § 39-26-734 Rebuilding from declared wildfire disaster - tax preference performance statement - legislative declaration - definitions - repeal
39-26-734. Rebuilding from declared wildfire disaster - tax preference performance statement - legislative declaration - definitions - repeal. (1) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:
(a) The general legislative purpose of the exemption allowed by this section is to provide tax relief for certain individuals;
(b) The specific legislative purpose of the exemption allowed by this section is to provide financial relief to Coloradans recovering and rebuilding from declared wildfire disasters; and
(c) The general assembly and the state auditor shall measure the effectiveness of the exemption allowed by this section based on the number of wildfire exemption certificates issued pursuant to subsection (5) of this section, the number and amount of all refund claims allowed pursuant to this section, and an estimate by the state auditor of the proportion of homeowners affected by declared wildfire disasters who benefitted from the exemption in the rebuilding or repairing of their homes.
(2) As used in this section, unless the context otherwise requires:
(a) "Building permit" means the document or documents issued by a local government to a qualified homeowner showing the estimated amount of use tax collected, if any, in connection with rebuilding or repairing the qualified homeowner's qualified residential structure.
(b) "Declared wildfire disaster" means a wildfire that was declared a disaster emergency by the governor pursuant to section 24-33.5-704 (4) on or after January 1, 2020, but before January 1, 2023.
(c) "Department" means the department of revenue.
(d) "Estimated construction and building materials cost" means the cost amount used by the local government to collect estimated use tax in connection with the issuance of a building permit. If no estimated use tax has been collected, "estimated construction and building materials cost" means half of the total contract price or total cost for rebuilding or repairing a qualified residential structure.
(e) "Executive director" means the executive director of the department of revenue.
(f) "Local government" means a county, city and county, or municipality.
(g) "Qualified homeowner" means a homeowner that is rebuilding or repairing or has employed a contractor to rebuild or repair a qualified residential structure that the homeowner owned at the time of a declared wildfire disaster.
(h) "Qualified residential structure" means a residential structure that was damaged or destroyed by a declared wildfire disaster.
(i) "Wildfire rebuild exemption certificate" means a written certification provided by a local government to a qualified homeowner that certifies that one or more building permits specifically identified therein have been issued to the qualified homeowner for rebuilding or repairing a qualified residential structure.
(3) (a) The sale, storage, use, or consumption of construction and building materials used directly in rebuilding or repairing a qualified homeowner's qualified residential structure is exempt from taxation under parts 1 and 2 of this article 26 as set forth in this section.
(b) The exemption created in subsection (3)(a) of this section shall be administered solely as a refund allowed to qualified homeowners to be applied for in accordance with this section and section 39-26-703. No retailer may exempt any sale pursuant to this section.
owner's qualified residential structure is exempt from taxation under parts 1 and 2 of this article 26 as set forth in this section.
(b) The exemption created in subsection (3)(a) of this section shall be administered solely as a refund allowed to qualified homeowners to be applied for in accordance with this section and section 39-26-703. No retailer may exempt any sale pursuant to this section.
(c) The exemption created in subsection (3)(a) of this section applies only to the state sales and use taxes levied pursuant to this article 26. Notwithstanding any other provision of law, the exemption shall not apply to the sales or use taxes levied by any local government, including any city, town, county, special purpose district, or limited purpose governmental entity; except that this subsection (3)(c) does not apply to the regional transportation district established by article 9 of title 32 or the scientific and cultural facilities district established by article 13 of title 32.
(4) (a) A qualified homeowner may claim a refund allowed pursuant to subsection (3) of this section for each qualified residential structure for which the qualified homeowner obtains a building permit and a wildfire rebuild exemption certificate issued by a local government in accordance with subsection (5) of this section.
(b) The amount of a refund claimed pursuant to this section shall be equal to four percent of the estimated construction and building materials cost for repairing or rebuilding the qualified residential structure that is the subject of the building permit and wildfire rebuild exemption certificate.
(c) A qualified homeowner must submit a claim for refund on the form and in the manner prescribed by the executive director. The claim for refund must include the wildfire rebuild exemption certificate issued in accordance with subsection (5) of this section and a true and correct copy of each building permit identified in the wildfire rebuild exemption certificate.
(d) The three-year application deadline in section 39-26-703 (2)(d) for a sales tax refund or refund of any use tax collected by a vendor does not apply to a claim for refund made pursuant to this section. A claim for refund made pursuant to this section must be filed on or before June 30, 2028.
(5) (a) The local government with jurisdiction to issue a building permit in an area affected by a declared wildfire disaster may issue a wildfire rebuild exemption certificate to a qualified homeowner. A wildfire rebuild exemption certificate must clearly identify the qualified homeowner, the contractor employed by the homeowner, if applicable, and each building permit issued by the local government to the qualified homeowner for rebuilding or repairing a qualified residential structure.
(b) To obtain a wildfire rebuild exemption certificate, a homeowner must certify, in a form prescribed by the executive director, that:
(I) The homeowner was the owner of each qualified residential structure to be rebuilt or repaired at the time the structure was damaged or destroyed by the declared wildfire disaster; and
(II) The replacement cost for each qualified residential structure to be rebuilt or repaired exceeds the homeowner's coverage under any homeowner's insurance policy associated with the structure.
(c) On or before September 30, 2023, and on or before September 30 of each calendar year thereafter through September 30, 2025, a local government shall provide the department with an electronic report of the number of wildfire rebuild exemption certificates issued by the local government for the preceding calendar year.
(6) The executive director shall:
(a) Provide a form for the wildfire rebuild exemption certificate to the proper official of the local government with jurisdiction to issue a building permit in an area after determining that the area was affected by a declared wildfire disaster;
the number of wildfire rebuild exemption certificates issued by the local government for the preceding calendar year.
(6) The executive director shall:
(a) Provide a form for the wildfire rebuild exemption certificate to the proper official of the local government with jurisdiction to issue a building permit in an area after determining that the area was affected by a declared wildfire disaster;
(b) Modify existing forms or create new forms as necessary to facilitate refund claims made pursuant to this section; and
(c) Adopt rules for the administration and enforcement of this section.
(7) In making a refund or allowing a credit pursuant to section 39-26-703, the department shall prioritize applications for refunds submitted pursuant to this section over refund applications submitted pursuant to other provisions of law.
(8) This section is repealed, effective July 1, 2028.
C.R.S. § 39-26-801 Legislative declaration
39-26-801. Legislative declaration. (1) The general assembly hereby finds and declares that:
(a) Colorado has a unique and complex state and local sales tax system;
(a.5) Colorado has a unique and complex local lodging tax system;
(b) Home rule jurisdictions have exercised their constitutional authority to establish their own sales and use tax systems, including their own licensing requirements, rates, taxable and nontaxable items, and definitions, and to establish their own local lodging tax systems;
(c) The resulting lack of uniformity can be especially cumbersome for businesses operating in multiple jurisdictions in Colorado; and
(d) It is time that a group of knowledgeable citizens come together to study options of further simplifying our tax system.
C.R.S. § 39-26-802 Sales and use tax simplification task force - creation - definitions - repeal
39-26-802. Sales and use tax simplification task force - creation - definitions - repeal. (1) (a) (I) Notwithstanding section 2-3-303.3, there is created the sales and use tax simplification task force, referred to in this part 8 as the "task force". The task force shall meet as necessary during any legislative session or any interim between legislative sessions to study the necessary components of a simplified sales and use tax system and a simplified local lodging tax system for both the state and local governments, including home rule municipalities and counties.
(II) Repealed.
(a.5) As used in this section, unless the context otherwise requires:
(I) "Electronic sales and use tax simplification system" means the electronic system described in section 39-26-802.7 for the collection and remittance of sales and use taxes.
(II) "Local lodging tax" means:
(A) A tax imposed by a local marketing district pursuant to section 29-25-112 (1)(a) or by a county pursuant to section 30-11-107.5; and
(B) Any other tax or fee that is imposed upon the transaction of furnishing rooms or accommodations in exchange for consideration and that is not a tax specified in subsection (1)(a.5)(II)(A) of this section whether imposed upon the lessor or the lessee.
(b) (I) The task force shall study both sales and use tax simplification between the state and local governments, including home rule municipalities, and local lodging tax simplification to identify opportunities and challenges within existing fiscal frameworks to adopt "feasible solutions", which are solutions that are practical, revenue-neutral, and do not require constitutional amendments or voter approval.
(II) The task force shall consider whether there are feasible solutions for:
(A) Making audits of retailers more uniform for all state and local taxing jurisdictions in the state;
(B) The utilization of a single sales and use tax return for state and local taxing jurisdictions as a part of the sales and use tax simplification system described in Senate Bill 19-006, enacted in 2019;
(C) Streamlining the requirements for state and local sales tax licenses, use tax licenses, and business licenses used for purposes of collecting sales and use taxes;
(D) Making uniform and possibly increasing the filing threshold amount for monthly sales tax filings between the state and local governments, including home rule municipalities;
(E) Simplifying use taxes levied by the state and local governments, including home rule municipalities;
(F) Streamlining and possibly making uniform the state and local sales tax exemptions for medical devices, including reviewing best practices among states in this area;
(G) Simplifying the process by which state and local sales and use taxes are collected for the purchase of a motor vehicle;
(H) Simplifying the issuance of local building permits and the levying of use tax on building materials and on mobile and small mobile construction equipment;
(I) Simplifying the process to claim and administer the various state sales and use tax exemptions;
(J) Simplifying the sales tax collection and remittance requirements for nonprofit organizations;
(K) Simplifying local lodging taxes levied by local governments, including home rule municipalities; and
(L) Adding the acceptance of returns and processing payment of any local lodging tax to the electronic sales and use tax simplification system or, alternatively, creating an electronic local lodging tax system that is a one-stop portal designed to facilitate the collection and remittance of local lodging taxes in the same manner in which the electronic sales and use tax simplification system facilitates the collection and remittance of local sales and use taxes.
(III) The task force shall:
ctronic sales and use tax simplification system or, alternatively, creating an electronic local lodging tax system that is a one-stop portal designed to facilitate the collection and remittance of local lodging taxes in the same manner in which the electronic sales and use tax simplification system facilitates the collection and remittance of local sales and use taxes.
(III) The task force shall:
(A) Seek regular updates from the office of information technology and the department of revenue regarding the development of the electronic sales and use tax simplification system described in Senate Bill 19-006, enacted in 2019;
(B) Once the electronic sales and use tax simplification system described in Senate Bill 19-006, enacted in 2019, is online, monitor and encourage participation by businesses and home rule municipalities;
(C) Seek regular updates from the office of information technology and the department of revenue regarding the purchase and development of a geographic information system (GIS) database to maintain jurisdictional boundaries of sales tax districts and to calculate appropriate sales and use tax rates for individual addresses for which the department of revenue received an appropriation in Senate Bill 19-006, enacted in 2019;
(D) Review the way in which special districts and specially assessed sales taxes add to the complexity of the state's sales and use tax structure, including, at minimum, the regional transportation district, the scientific and cultural facilities district, any local improvement districts, any regional transportation authority, any multi-jurisdictional housing authority, and any health services district, and any mass transportation system tax, public safety improvement tax, metropolitan district tax, and local lodging tax;
(E) Review and compare the state's sales and use tax definitions with the standard sales tax definitions developed and adopted by local taxing jurisdictions pursuant to Senate Joint Resolution 14-038, enacted in 2014, to determine if any simplification might be achieved between the two sets of definitions;
(F) Examine the effects of the changes to the vendor fee implemented pursuant to House Bill 19-1245, enacted in 2019;
(G) Review any evaluations of sales and use tax expenditures prepared by the office of the state auditor that are completed pursuant to section 39-21-305, unless a tax commission, legislative interim study committee, or other type of legislative committee, task force, or study group is formed to review such evaluations. If a tax commission, legislative interim study committee, or other type of legislative committee, task force, or study group is formed to review such evaluations, the task force shall seek regular updates from such commission or committee regarding any decisions that such commission or committee might make related to any sales or use tax expenditure evaluated by the office of the state auditor.
(H) Explore options for eliminating a department of revenue requirement for taxpayers to use branch ID reporting;
(I) Determine whether the state should adopt a sales tax exemption for an isolated or occasional sale of a business in an asset sale;
(J) Regularly review the business impact of the destination sourcing rules set forth in section 39-26-104 (3), including the thresholds that trigger the requirement for destination sourcing; and
(K) Analyze or review any other relevant topic related to the simplification of sales and use tax administration in the state.
exemption for an isolated or occasional sale of a business in an asset sale;
(J) Regularly review the business impact of the destination sourcing rules set forth in section 39-26-104 (3), including the thresholds that trigger the requirement for destination sourcing; and
(K) Analyze or review any other relevant topic related to the simplification of sales and use tax administration in the state.
(c) (I) In the 2024 interim, the task force:
(A) Shall receive testimony at each meeting from industry stakeholders regarding the status of conversations and the feasibility for the electronic collection and remittance of local lodging taxes described in subsection (1)(b)(II)(L) of this section; and
(B) May recommend legislation to be considered during the first regular session of the seventy-fifth general assembly to implement or create an electronic system for collection and remittance of local lodging taxes described in subsection (1)(b)(II)(L) of this section.
(II) This subsection (1)(c) is repealed, effective July 1, 2026.
(2) The task force consists of:
(a) Two members from the house of representatives, one appointed by the speaker of the house of representatives and one appointed by the minority leader of the house of representatives;
(b) Two members from the senate, one appointed by the president of the senate and one appointed by the minority leader of the senate;
(c) A representative of the department of revenue who is well versed in sales and use tax collection and distribution issues and who is knowledgeable of the policy statements and resolutions regarding sales and use tax collection and uniformity of the multistate tax commission, of which Colorado is a member;
(d) A representative of the Colorado municipal league;
(e) A representative of Colorado counties, incorporated;
(f) A member of a statewide association of small businesses that is addressing the simplification of sales and use tax collection, appointed by the governor;
(g) A member of the statewide chamber of commerce, appointed by the governor;
(h) A state and local sales and use tax law practitioner who is not employed by a home rule or statutory city or city and county, appointed by the governor;
(i) A member with state and local sales and use tax accounting experience who is not employed by a home rule or statutory city or city and county, appointed by the governor; and
(j) One manager, mayor, council-person, finance officer, or tax administrator of a home rule or statutory city or city and county, appointed by the Colorado municipal league from each of its four population membership categories, according to its bylaws.
(2.5) (a) All appointments described in subsection (2) of this section must be made no later than June 1, 2021, and each June 1 thereafter. Members of the task force serve at the pleasure of the applicable appointing authority or until the member no longer serves in the position for which he or she was appointed to the task force, at which time a vacancy is deemed to exist on the task force. If a vacancy arises on the task force, the appropriate appointing authority shall appoint a replacement member that meets the requirements set forth in subsection (2) of this section for the vacant position.
ble appointing authority or until the member no longer serves in the position for which he or she was appointed to the task force, at which time a vacancy is deemed to exist on the task force. If a vacancy arises on the task force, the appropriate appointing authority shall appoint a replacement member that meets the requirements set forth in subsection (2) of this section for the vacant position.
(b) Starting in 2021, the task force shall elect a chair and a vice-chair at the first meeting held on or before July 16, 2021. The chair and vice-chair appointments must alternate between a member from the house of representatives and a member from the senate with the first chair being from the senate and the first vice-chair being from the house of representatives. The person serving as chair, or a member of the same house if such person is no longer a member thereof, shall serve as vice-chair during the next legislative session, and the person serving as vice-chair, or a member of the same house if such person is no longer a member thereof, shall serve as chair during the next legislative session.
(3) Starting in 2021, the task force shall meet at least eight times, with the first meeting occurring no later than July 16, 2021. Task force meetings shall be open to the public and the task force shall solicit the testimony of the members of the public.
(4) (a) The members of the task force appointed pursuant to subsections (2)(a) and (2)(b) of this section are entitled to receive compensation and reimbursement of expenses as provided in section 2-2-326.
(b) The legislative council staff and the office of legislative legal services shall be available to assist the task force in carrying out its duties.
(5) No later than November 1, 2021, and no later than each November 1 thereafter, the task force shall make a report to the legislative council created in section 2-3-301 that may or may not include recommendations for legislation.
C.R.S. § 39-26-802.5 Sales and use tax simplification - request for information
39-26-802.5. Sales and use tax simplification - request for information. (1) (a) No later than June 30, 2018, the department of revenue shall issue a request for information, in accordance with the procurement code, articles 101 to 112 of title 24, and within the department's existing resources, for an electronic sales and use tax simplification system that the state or any local government that levies a sales or use tax, including home rule municipalities and counties, could choose to use that would provide:
(I) Accurate address location information to be used by a retailer to determine the correct taxing jurisdiction for which the retailer should collect and remit sales or use tax;
(II) A single application process for state and local sales tax licenses;
(III) A uniform sales and use tax remittance form;
(IV) A single point of remittance for state and local sales and use tax; and
(V) A taxability or exemption matrix.
(b) The electronic sales and use tax simplification system must provide access to the data that the state or any local government may need for purposes of auditing taxpayers or for reconciling sales and use tax revenue projections.
(c) The request for information process must:
(I) Identify initial costs for the electronic sales and use tax simplification system and any possible ongoing annual costs;
(II) Explain how, to the maximum extent practicable, the system could be able to interface with all existing accounting systems used by the retailers, the state, or local governments;
(III) Allow for various payment options to pay for the cost of the development or implementation of the electronic sales and use tax simplification system, including contributions by the state, local governments, or retailers, or any combination thereof;
(IV) Anticipate that the sales and use tax base or rates of the state or any local government that levies a sales or use tax may change over time and maintain a history of those changes, including the effective date of such changes; and
(V) Anticipate that the jurisdictional boundaries of a local government that levies a sales or use tax may change over time, and maintain a history of those changes, including the effective date of such changes.
(d) A responder to the request for information shall not expect or anticipate that the state or any local government that levies a sales or use tax and that might use the electronic sales and use tax simplification system will, for simplification purposes:
(I) Adjust their sales and use tax base or rate;
(II) Adopt uniform definitions; or
(III) Unify their audit authority and process in any fashion.
(2) When the request for information issuance is complete, the department of revenue shall notify the sales and use tax simplification task force created in section 39-26-802. The task force shall hold a meeting within ninety days of the notification to review the information received pursuant to the request for information and determine next steps. The task force shall invite a representative of the department of revenue's purchasing department to help ensure that all procurement issues are considered when the task force determines its next steps.
C.R.S. § 39-26-802.7 Electronic sales and use tax simplification system - sourcing method - implementation - legislative intent - definitions
39-26-802.7. Electronic sales and use tax simplification system - sourcing method - implementation - legislative intent - definitions. (1) As used in this section, unless the context otherwise requires:
(a) "Department" means the department of revenue.
(b) "Local taxing jurisdiction" means a city, town, municipality, county, special district, or authority authorized to levy a sales or use tax pursuant to title 24, 25, 29, 30, 31, 32, 37, 42, or 43, and any county, city and county, or municipality governed by a home rule charter.
(c) "Office of information technology" or "office" means the office of information technology created in section 24-37.5-103.
(d) "Sales and use tax simplification task force" or "task force" means the sales and use tax simplification task force created in section 39-26-802.
(2) (a) The office of information technology, on behalf of the department, within existing resources, shall conduct a sourcing method in accordance with the applicable provisions of the "Procurement Code", articles 101 to 112 of title 24, and any applicable rules, for the development of an electronic sales and use tax simplification system. The office and the department shall involve stakeholders to develop the scope of work.
(b) On and after the date the electronic sales and use tax simplification system is online, and notwithstanding any law to the contrary, the department shall accept any returns and payments processed through the system for state sales and use tax and for any sales and use taxes that are collected by the department on behalf of any local taxing jurisdiction.
(c) (I) On and after the date the electronic sales and use tax simplification system is online, it is the general assembly's intent that at least three local governments governed by a home rule charter voluntarily use the system for accepting returns and processing payments of any local sales and use tax.
(II) It is the general assembly's intent that the voluntary use of the system increase every year so that no later than three years after April 12, 2019, all local governments governed by a home rule charter are voluntarily using the system.
(d) As soon as possible, but no later than January 1, 2025, the department shall modify the electronic sales and use tax simplification system:
(I) To populate a local account number on all returns and summary reports, if the retailer filing the return has a number and provides the number in the sales and use tax simplification system;
(II) By developing a simplified user interface for filing returns as an alternative to the current spreadsheet method, and, in doing so, the department shall take into consideration the features of other sales and use tax filing interfaces that have favorable user recommendations;
(III) To provide retailers with a bulk testing option for address files; and
(IV) To include:
(A) A column to allow a description for a deduction that is described as "other";
(B) Filtering options for local taxing jurisdictions to sort retailers and create reports that are exportable as spreadsheets;
(C) Local account numbers on a detail tab for retailers; and
(D) A tab for a retailer's filing history and payments.
rs with a bulk testing option for address files; and
(IV) To include:
(A) A column to allow a description for a deduction that is described as "other";
(B) Filtering options for local taxing jurisdictions to sort retailers and create reports that are exportable as spreadsheets;
(C) Local account numbers on a detail tab for retailers; and
(D) A tab for a retailer's filing history and payments.
(e) With the exception of a charge for a payment by credit card, the department shall not impose a convenience fee or any other type of charge for a payment through the electronic sales and use tax simplification system. The department shall not deduct an amount from the amounts distributed to the local taxing jurisdictions in lieu of the convenience fee or other charges that are prohibited by this subsection (2)(e).
(3) For the 2020-21 state fiscal year, the general assembly shall appropriate eight million seven hundred fifty thousand dollars to the office of the governor for use by the office of information technology for the initial funding and ongoing maintenance of the electronic sales and use tax simplification system. Any contract entered into for the system must provide that initial funding payments to the vendor are made on a quarterly basis.
(4) In the interim between the 2019 and 2020 legislative sessions, the office and the department shall regularly provide the sales and use tax simplification task force with any such detailed information regarding the sourcing method progress as is allowed under the procurement code.
(5) (a) The department shall create a campaign to promote the electronic sales and use tax simplification system for the purpose of increasing awareness, participation, and compliance by retailers and local taxing jurisdictions. The campaign must include information for taxpayers about the zero return process and additional requirements that may apply when filing a return for a home rule local taxing jurisdiction, and it must also include demonstrations for cities of the registration and filing processes from a retailer's perspective.
(b) The department shall solicit and consider feedback from interested stakeholders of the electronic sales and use tax simplification system, such as local taxing jurisdictions, organizations representing local taxing jurisdictions, representatives of the business community, and retailers, about additional potential enhancements to the system that will lead to greater local taxing jurisdiction participation and greater compliance by retailers.
C.R.S. § 39-26-802.9 Retailers without physical presence or with only incidental physical presence in local taxing jurisdictions - streamlined application process and no fee for local general business license - legislative declaration - definitions
39-26-802.9. Retailers without physical presence or with only incidental physical presence in local taxing jurisdictions - streamlined application process and no fee for local general business license - legislative declaration - definitions. (1) The general assembly hereby finds and declares that:
(a) Licensing of retailers that are subject to payment of sales and use taxes in one or more local taxing jurisdictions but either do not have physical presence in or have only incidental physical presence in those local taxing jurisdictions is a matter of statewide concern;
(b) The state's electronic tax administration infrastructure, including the electronic sales and use tax simplification system created and brought online pursuant to section 39-26-802.7 and commonly known as SUTS, can be used to make the imposition, collection, and administration of local sales and use taxes collected by retailers that either do not have physical presence or have only incidental physical presence in the local taxing jurisdictions imposing the taxes simpler and more efficient so long as:
(I) Each local taxing jurisdiction is required to grant a general business license, free of charge, to any retailer that has a state standard retail license and either does not have physical presence or has only incidental physical presence within the local taxing jurisdiction so long as the local taxing jurisdiction has not previously revoked the retailer's general business license due to the retailer's failure to comply with the local taxing jurisdiction's requirements for holding a general business license; and
(II) Sufficient information about any such retailer is collected when the retailer applies for a state standard retail license to address any local taxing jurisdiction concerns, including but not limited to concerns relating to administrative efficiency, retailer compliance, and collection of sales and use tax revenue;
(c) Because it is important to ensure that the concerns of local taxing jurisdictions are addressed, it is necessary and appropriate to require the department of revenue to consult with local taxing jurisdictions when modifying application requirements for the state standard retail license as required by this section; and
(d) It is appropriate to eliminate the cost of a general business license to a retailer that has a state standard retail license and either does not have physical presence in a local taxing jurisdiction or has only incidental physical presence within the local taxing jurisdiction by prohibiting a local taxing jurisdiction from charging a fee for a general business license to such a retailer until such time as the local taxing jurisdiction is required to allow any such retailer to make retail sales within the local taxing jurisdiction without applying separately to the local taxing jurisdiction for a general business license.
(2) As used in this section, unless the context otherwise requires:
(a) "Department" means the department of revenue.
(b) "General business license" means a license issued by a local taxing jurisdiction that a retailer must obtain to legally make retail sales in the local taxing jurisdiction regardless of whether the license is called a business license, a sales and use tax license, or by another name. An occupational license or any other license required to engage in a business activity other than making retail sales of goods is not a general business license.
(c) "Incidental physical presence" means, with respect to a local taxing jurisdiction, physical presence as described in subsection (2)(e)(I)(B), (2)(e)(I)(C), or (2)(e)(I)(E) of this section, or any combination of said subsections, within the local taxing jurisdiction that occurs infrequently and is not regularly scheduled within the ordinary course of an individual or entity's business activities.
(d) "Local taxing jurisdiction" has the meaning set forth in section 39-26-802.7 (1)(b).
cal presence as described in subsection (2)(e)(I)(B), (2)(e)(I)(C), or (2)(e)(I)(E) of this section, or any combination of said subsections, within the local taxing jurisdiction that occurs infrequently and is not regularly scheduled within the ordinary course of an individual or entity's business activities.
(d) "Local taxing jurisdiction" has the meaning set forth in section 39-26-802.7 (1)(b).
(e) (I) "Physical presence" means, with respect to a local taxing jurisdiction, performing or providing services or selling, leasing, renting, delivering, or installing tangible personal property for storage, use, or consumption within the local taxing jurisdiction. Physical presence includes any of the following activities:
(A) Directly or indirectly by a subsidiary maintaining a building, store, office, salesroom, warehouse, or other place of business within the local jurisdiction;
(B) Sending one or more employees, agents, or commissioned salespersons into the local jurisdiction to solicit business, to install, assemble, repair, service, or assist in the use of its products, or for demonstration or other reasons;
(C) Maintaining one or more employees, agents, or commissioned salespersons on duty at a location within the local taxing jurisdiction;
(D) Owning, leasing, renting, or otherwise exerting control over real or personal property sales within the local taxing jurisdiction;
(E) Engaging in activities within the taxing jurisdiction that are subject to other business, fire, zoning, or other regulations of the local jurisdiction; or
(F) Being subject to taxable privileges other than the requirement to collect sales tax imposed by the local taxing jurisdiction.
(II) Incidental presence by employees, agents, or commissioned salespersons within a local taxing jurisdiction when not otherwise engaged in the activities set forth in subsection (2)(e)(I) of this section does not constitute physical presence.
(f) "State standard retail license" means a license issued under section 39-26-103 that authorizes a retailer to make retail sales in the state.
(g) "SUTS" means the electronic sales and use tax simplification system created and brought online pursuant to section 39-26-802.7.
(3) (a) In order to enable the streamlining of the imposition, collection, and administration of sales and use taxes imposed by local taxing jurisdictions on retail sales made by retailers that have a state standard retail license and either do not have physical presence within a local taxing jurisdiction or have only incidental physical presence within a local taxing jurisdiction by streamlining the application process for and eliminating the expense of general business licenses for such retailers, the department of revenue shall require sufficient information to be collected from such a retailer, when the retailer applies for or renews a state standard retail business license through SUTS or by other means or at any other time to the extent necessary, and made available to local taxing jurisdictions to ensure that concerns of local taxing jurisdictions, including but not limited to concerns relating to administrative efficiency, retailer compliance, and collection of sales and use tax revenue, are addressed. In determining what information to collect and how to make the information collected available to local taxing jurisdictions as required by this subsection (3)(a), the department shall consult with local taxing jurisdictions, including but not limited to large, medium, and small home rule and nonhome rule municipalities and large, medium, and small counties. The department shall also consult with retailers to address any reasonable concerns they may have.
the information collected available to local taxing jurisdictions as required by this subsection (3)(a), the department shall consult with local taxing jurisdictions, including but not limited to large, medium, and small home rule and nonhome rule municipalities and large, medium, and small counties. The department shall also consult with retailers to address any reasonable concerns they may have.
(b) The department shall accomplish the tasks set forth in subsection (3)(a) of this section expeditiously so that no later than July 1, 2023, and sooner if feasible, a retailer that has a state standard retail license and either does not have physical presence within a local taxing jurisdiction or has only incidental physical presence within a local taxing jurisdiction can make retail sales within the local taxing jurisdiction without having to apply separately to the local taxing jurisdiction for a general business license.
(4) (a) On and after July 1, 2022, a local taxing jurisdiction shall not charge a fee for a general business license to a retailer that has a state standard retail license, makes retail sales within the local taxing jurisdiction, and either does not have physical presence in the local taxing jurisdiction or has only incidental physical presence within the local taxing jurisdiction.
(b) On and after July 1, 2023, a local taxing jurisdiction shall not require a retailer that has a state standard retail license, makes retail sales within the local taxing jurisdiction, and either does not have physical presence in the local taxing jurisdiction to or has only incidental physical presence within the local taxing jurisdiction to apply separately to the local taxing jurisdiction for a general business license. If the local taxing jurisdiction requires a general business license, it shall automatically issue a general business license at no charge to such a retailer using the information provided by the department pursuant to subsection (3) of this section; except that a local taxing jurisdiction is not required to issue a general business license to a retailer if the local taxing jurisdiction has previously revoked a general business license held by the retailer for a violation of its local code. In addition, nothing in this subsection (4)(b) prohibits a local taxing jurisdiction from suspending or revoking a general business license for a violation of its local code.
C.R.S. § 39-26-803 Gifts, grants, or donations
39-26-803. Gifts, grants, or donations. The task force may seek, accept, and expend gifts, grants, or donations from private or public sources for the purposes of this part 8.
C.R.S. § 39-26-804 Repeal of part
39-26-804. Repeal of part. This part 8 is repealed, effective July 1, 2026.
C.R.S. § 39-26-901 Temporary adjustment of rates of state sales and use taxes - refund of excess state revenues - legislative declaration - definition - repeal
39-26-901. Temporary adjustment of rates of state sales and use taxes - refund of excess state revenues - legislative declaration - definition - repeal. (1) (a) If, for any state fiscal year commencing on or after July 1, 2024, but before July 1, 2034, the estimated amount of state revenues in excess of the limitation on state fiscal year spending imposed by section 20 (7)(a) of article X of the state constitution that are required to be refunded for the state fiscal year is greater than one billion five hundred million dollars, the executive director shall temporarily reduce, for the following state fiscal year, the state sales tax rate set forth in section 39-26-106 and the state use tax rate set forth in section 39-26-202 by thirteen one-hundredths of one percent.
(b) (I) The calculation of the estimated amount of excess state revenues for a state fiscal year required by subsection (1)(a) of this section is based on the March economic and revenue forecast that is selected by the joint budget committee as the basis for the state's budget for the following state fiscal year.
(II) For each state fiscal year commencing on or after July 1, 2025, the executive director shall annually adjust the excess state revenue amount specified in subsection (1)(a) of this section by a percentage equal to the percentage of allowable increase in state fiscal year spending calculated pursuant to section 24-77-103 (2)(a)(I) for the state fiscal year for which the excess state revenue must be refunded.
(c) The temporary state sales and use tax rate reduction in subsection (1)(a) of this section takes effect only if the amount of excess state revenues required to be refunded for a state fiscal year exceeds the total of the amount of reimbursement for property tax revenues lost as a result of both the property tax exemptions allowed by part 2 of article 3 of this title 39 and the reduced valuation for assessment of qualified-senior primary residence real property pursuant to sections 39-1-104.2 and 39-1-104.6 that is paid by the state treasurer to each county treasurer as required by section 39-3-207 (4) or 39-1-104.6 (9)(c) for the property tax year that commenced during the state fiscal year plus the estimated amount by which state revenues will be decreased as the result of a reduction in the state individual income tax rate required by section 39-22-627.
(2) If, at a statewide election, voters authorize the state to retain and spend all or any portion of an amount of excess state revenues for a state fiscal year that was equal to or exceeded the amount specified in subsection (1)(a) of this section, and therefore required a reduction of the state sales and use tax rates, so that the amount of remaining excess state revenues is less than the amount specified in subsection (1)(a) of this section, the executive director shall restore the state sales and use tax rates to the standard rates imposed by section 39-26-106 (1) or 39-26-202 (1) beginning on January 1 of the following calendar year. Any amount refunded by such a reduction in the state sales and use tax rates constitutes an over-refund as defined in section 24-77-103.7 (1).
(3) As used in this part 9, unless the context otherwise requires, "excess state revenues" means the total amount of the state revenues for the state fiscal year in excess of the limitation on state fiscal year spending imposed by section 20 (7)(a) of article X of the state constitution that voters statewide have not authorized the state to retain and spend and that the state is required to refund under section 20 (7)(d) of article X of the state constitution, including any adjustment for amounts specified in section 24-77-103.7 or 24-77-103.8.
(4) Any temporary state sales and use tax rate reduction pursuant to subsection (1) of this section does not affect the calculation of the amount of:
(a) The vendor fee credited to the housing development grant fund in accordance with section 39-26-123 (3)(b);
n 20 (7)(d) of article X of the state constitution, including any adjustment for amounts specified in section 24-77-103.7 or 24-77-103.8.
(4) Any temporary state sales and use tax rate reduction pursuant to subsection (1) of this section does not affect the calculation of the amount of:
(a) The vendor fee credited to the housing development grant fund in accordance with section 39-26-123 (3)(b);
(b) The state sales tax increment revenue for regional tourism zones in accordance with part 3 of article 46 of title 24; or
(c) The aviation fund created in section 43-10-109.
(5) The general assembly finds and declares that temporary state sales and use tax rate reductions are reasonable methods of refunding a portion of the excess state revenues required to be refunded in accordance with section 20 (7)(d) of article X of the state constitution.
(6) This section is repealed, effective July 1, 2035.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.docxFetched: 10/6/2026